The Saskatchewan Securities Commission has scheduled a hearing for a mutual fund rep that it says it accidentally granted registration.

The SSC will hold a hearing on June 4 to consider whether it is in the public interest to continue a temporary order that John Hilary McLeod cease trading in the securities of Consolidated Ewing Industries Inc., Korte Oil and SkyFox Aviation Inc. The commission will also consider whether McLeod is suitable for registration, and whether he should pay the costs of the hearing.

The commission issued a temporary order against McLeod back in 1996, stemming from an investigation it began in 1995, alleging that he traded securities without registration, and traded in companies that had not issued prospectuses. It also alleged that McLeod, while under oath, misrepresented and deceived the SSC staff during the investigation.

Nevertheless, on March 25, 2002, McLeod was registered as a mutual fund salesperson on behalf of Quadrus Investment Services Ltd. The statement of allegations says that the registration was granted “by mistake when the staff did not check the commission’s database to determine whether he was the subject of any enforcement orders issued by the commission.”

On April 30, the Deputy Director, Registration, Leah Fichter became aware that McLeod was subject to the Cease Trade Order. She spoke with Ann Traczk, national compliance officer at Quadrus, and on May 1, Quadrus filed a Uniform Termination Notice with the commission giving notice that it had dismissed him for cause based on the existence of the Cease Trade Order against him.

The SSC says that McLeod has requested a hearing to determine whether the order can be rescinded and whether he is suitable for registration.