The Ontario Securities Commission (OSC) has dismissed an application seeking the dismissal of an enforcement case, and alleging bias against the commission.

The OSC released a decision Monday, dismissing the motion of Fawad Ul Haq Khan and Khan Trading Associates Inc. (carrying on business as Money Plus), requesting the dismissal of the proceeding against them, or that the proceeding be heard by another commissioner based on a claim of bias.

According to the decision, the respondents in the case argued that the allegations against them are baseless and should be dismissed. OSC staff argued that this is premature as the allegations will be heard in a forthcoming hearing on the merits; which is scheduled for 25 days, starting on May 5, continuing until June 12.

OSC vice chair, Mary Condon, heard the motion, and ruled that it is not appropriate to grant a dismissal. According to the decision, she found that the request raises issues that go to the merits of the allegations. “The issue of whether staff has proven its case, on a balance of probabilities, is a matter to be decided by the panel presiding over the merits hearing, after considering and reviewing the evidence and submissions put forward by the parties,” the decision said.

As for the claim of bias, Condon ruled that “the applicants have not provided evidence to establish a reasonable basis for a finding of apprehension of bias”.

In her decision, she suggests that this claim appears to be based on the respondents disagreeing with her earlier ruling on a motion requesting that the commission call 700 witnesses in the case. (See Investment Executive, OSC rejects motion to summon 700 witnesses, October 24, 2013.)

Condon declined to revisit that decision, which was handed down last year. “I find that this is insufficient to establish the existence of a reasonable apprehension of bias,” she said in this latest decision.

The next scheduled appearance in the case will be a confidential pre-hearing conference to be held on Feb. 3 in preparation for a hearing into the allegations, which have not been proven. In the case, the OSC is alleging that the accused engaged in unregistered trading and advising in commodity futures, made misrepresentations to OSC staff, and misled the commission, among other things.