(January 12 – 17:40 ET) —The Ontario Securities Commission said it issued a cease trading order against DJL Capital Corp. and Dennis John Little.
Between September 1997 and September 1998, the OSC said, DJL Capital accepted subscriptions to units in itself from investors residing in Ontario and raised $800,000. It alleges that DJL Capital and Little traded in the units without filing a prospectus as required under the Ontario Securities Act.
The OSC also said DJL Capital and Little failed to disclose to investors that funds accepted from investors for the purchase of the units were not used for the purposes set out in an offering memorandum provided to some of the investors.
In addition, the order states that DJL Capital and Little failed to disclose that investors’ funds were used instead for payments to Little in the amount of about $158,000.
The Temporary Order further states that DJL Capital and/or Little made various representations which were misleading to investors and contrary to the
public interest.
A hearing is scheduled for Jan. 21 at 10:00 ET in Toronto.
IE Staff