The Ontario Securities Commission has issued a Notice of Hearing and Statement of Allegations in respect of Edwards Securities Inc., David Edwards, David Johnson, Clansman 98 Investments Inc. and Douglas Murdock. Edwards and Johnson were executives of Edwards Securities Inc., and Murdock is the president of Clansman 98 Investments.

Edwards Securities, Edwards and Johnson were registered with the OSC until March of 2000. Johnson was the designated trading officer of Edwards Securities. Murdock and Clansman have never been registered with the commission.

The allegations relate to events that took place between February and April of 1998. During this time, staff allege that the respondents sold shares of Clansman 98 to at least 89 individual investors, for proceeds of at least $1,412,750. Staff allege that these sales were not conducted pursuant to a prospectus, and in the case of Clansman and Murdock, without proper registration.

Staff further allege that Edwards Securities, Edwards and Johnson failed to disclose the commission that Edwards Securities received from these sales, and that some of the proceeds of sale would be used to purchase shares of another company owned by Edwards. Finally, staff allege that Johnson failed to properly supervise the activities of Edwards Securities and Edwards.

The first appearance in this matter will be held at 10:00 ET on September 11, at the Commission’s in Toronto.