The Ontario Securities Commission has launched three proceedings to protect small investors.

Today the regulator initiated prodeedings against Jose Castaneda. On June 20, 2005, a Notice of Hearing was issued and Statement of Allegations delivered alleging that Castaneda traded in securities without being registered, and while subject to a previous cease trade order made by the OSC in June 2000. The cease trade order expired on June 7, 2005.

Staff allege that Castaneda appropriated over $1 million from investors for the ostensible purpose of trading in foreign currencies. Castaneda did not disclose to investors the fact that he was subject to an existing cease trade order. Many contributors did not receive any return on their investments, as Castaneda lost a substantial portion of their funds in currency and commodity futures trading and converted whatever funds were remaining to his own personal use.

A further cease trade order was issued on June 7, which, on consent, was extended by the Commission last week until the conclusion of a hearing, schedule to commence on July 26.

As announced yesterday, OSC taff allege that Momentas Corporation, and the individually named respondents –Howard Rash, Alexander Funt, Suzanne Morrison and Malcolm Rogers — have been acting as market intermediaries without being registered.

Between August 2003 and May 2005, Momentas raised approximately $6 million through the sale of its convertible debentures. Of this amount, approximately $2.9 million was raised from the sale of debentures to 97 Ontario residents.

On June 9, 2005, the OSC issued a temporary cease trade and exemption removal order with respect to Momentas, Rash, Funt and Morrison. On consent, the OSC continued the temporary order until July 8, when a hearing will be held to consider whether it is in the public interest to further extend the order until the conclusion of the hearing in this matter.

Also yesterday, the OSC said it will convene a hearing on July 6 to consider a settlement reached between staff and Ron Hew.

Between 1992 and 2004 Hew directed trading in the accounts of at least 17 individuals by using their online passwords and/or obtaining trading authorization over their accounts. He did so on the agreement that he would achieve 20% of any profits made on a monthly basis.

Virtually all of the investors; funds (approximately $600,000 – $800,000) were depleted and Hew received commissions in the approximate amount of $80,000-$100,000.

Hew also established an investment club in or about 2001, on the same agreed terms. He received approximately $400 in “commissions” from the Club. All investors were resident in Ontario. Hew employed the same trading strategy for all investors, namely, aggressive trading in U.S. hi-tech stock utilizing margin.

Hew has never been registeredas an advisor in Ontario.