The Ontario Securities Commission is investigating Milehouse Investment Management Ltd., Pierrepont Trading Inc., Patrick Lett, the president and director of Milehouse and Pierrepont, and BMO Nesbitt Burns Inc., John Dunn and John Hawkyard over allegations related to trading without registration and failure to adequately supervise reps at Nesbitt.

A hearing will be held on September 23 in Toronto to consider the settlement agreement, which was reached by OSC staff and Nesbitt.

The allegations relate to the conduct of the respondents between January 1996 and October 1999. Staff allege that Lett and his companies, Milehouse and Pierrepont, traded in securities without being registered.

The OSC alleges that Dunn, who was the branch manager and investment advisor who managed the Milehouse and Pierrepont accounts at Nesbitt, by providing Lett with letters that contained inaccurate representations regarding the accounts of Milehouse and Pierrepont.

OSC staff allege that Hawkyard, under the direction of Dunn and Lett, also provided letters to Lett that contained inaccurate representations regarding the Milehouse and Pierrepont accounts.

Staff also allege that Nesbitt failed to adequately supervise the Milehouse and Pierrepont accounts and Dunn’s actions in relation to these accounts.

Responding to earlier published reports, Melissa Kennedy, manager of litigation, said “Staff is not seeking a ‘sweeping review’ of Nesbitt practices and procedures and the parties have already entered into a settlement agreement which identifies only certain practices and procedures to be reviewed. These matters will be addressed before the settlement panel on Monday and must remain confidential unless and until the settlement is approved by the commission.”