The Ontario Securities Commission has scheduled a hearing into allegations of fraud against Foreign Capital Corp., Montpellier Group Inc. and Pierre Montpellier.

On April 14, 2004, Pierre Montpellier pled guilty in court to fraud and theft. Specifically, he agreed that he had defrauded 128 investors in Foreign Capital Corp. of $5,347,300.00 by falsely representing to them that their funds would be invested in private placement programs. He further agreed that at the time of these offences, he was a licensed mutual funds salesman, and was offering investment counselling services through the offices of the Montpellier Group Inc. located in Sudbury, Ont.

On the basis of these facts, OSC enforcement staff allege that Montpellier, the Montpellier Group Inc. and Foreign Capital Corp. have engaged in conduct contrary to the public interest.

The hearing of these allegations has been scheduled for February 25, 2005 at the commission’s offices in Toronto.