The Ontario Securities Commission has issued a notice of hearing against Teodosio Pangia, Agostino Capista and Dallas/North Group Inc. alleging that they traded without registration.

The allegations have yet to be proven. The OSC is seeking trading and registration bans or suspensions, director/officer bans and investigation costs.

The allegations say that between March 1995 and February 1996, Pangia, Capista and/or Dallas/North sold shares of E.P.A. Enterprises Inc. to members of the public. In total, at least 452,000 EPA shares were sold to about 90 investors for total proceeds of more than $1.38 million.

Neither man was registered to trade, but the trades were conducted “off book” with the help of three TD Evergreen employees: Simon Kin-Ho Tam, who was hired by TD Evergreen to set up a branch office in Scarborough, Ont. to target the Chinese-Canadian community and was a branch manager and vice president at TD Evergreen; along with two other registered reps, Woody Woo-Keung Wu and April Shuk-Fan Che.

Pangia was the president, chairman and CEO of EPA, and the president and a director of Dallas/North. Capista was the secretary, treasurer and/or a director of Dallas/North. The purchasers of EPA shares were directed to make cheques payable to Dallas/North or a company by the name of Envirovision International Inc.

The OSC says that in at least 15 of the EPA sales transactions between June and August, 1995, Pangia traded in EPA shares contrary to the Securities Act; and that the trading was a distribution for which a prospectus should have been filed.

Wendy Berman of Heenan Blaikie is representing Pangia. She says she can not comment on the specific allegations against him. “I can, however, advise that Mr. Pangia intends to vigorously defend the allegations.”

The hearing is scheduled to begin December 5 at the OSC.