The Ontario Securities Commission has
approved settlement agreements reached by OSC enforcement staff and David Frederick Johnson, Clansman 98 Investments Inc. and Douglas G. Murdock.

These agreements arise from an enforcement action initiated on Aug. 9, 2002, when staff alleged that Murdock and Clansman traded in securities in violation of the prospectus and registration requirements contained in
Ontario securities law.

Murdock and Clansman admit that, as a result of this illegal distribution, an amount in excess of $1,000,000 was raised from at least 89 investors. Johnson admitted that he failed to properly supervise the actions of Edwards Securities Inc. and David Edwards in the course of this illegal distribution.

Several sanctions have been levied:

Murdock must cease trading in securities on a permanent basis, is permanently prohibited from becoming a director or officer of an issuer, must resign any positions that he currently holds as a director or officer of an issuer. He was also reprimanded by the Commission;

Clansman must cease trading in securities on a permanent basis, and was reprimanded.

Johnson is permanently prohibited from becoming a director or officer of a registrant, and was reprimanded by the Commission.

Next week, the Commission will consider settlement agreements reached with the remaining respondents, ESI and David Gerald Edwards.