By James Langton

(January 9 – 16:50) – The Investment Dealers Association has scheduled a hearing for late January into the case of Essex Capital Management Inc.

The disciplinary hearing concerns Nelson Allen and Robin Moriarty, who were both employed as registered reps at Essex, which was owned by Allen. Neither individual is presently working in the securities industry.

According to the IDA, there are both criminal and provincial charges pendingin this matter. The
provincial offences were adjourned until the criminal matters have been resolved.

Back in the spring of 1999, the IDA closed down Essex after the Financial Services Commission of Ontario issued a cease and desist order against both it and Nelbar Financial Corp. Allen served as Nelbar’s president.

The actions came after FSCO learned from some of its clients that Nelbar was taking deposits without registration. After a more extensive investigation, FSCO laid a charge of operating an unregistered loan corporation against Nelbar, Allen and Moriarty.

The commission alleged Nelbar took about $10.5 million in deposits from about 110 depositors with some 150 accounts. FSCO made no accusations against Essex, but the IDA shut it down because it was the destination for funds from some of Nelbar clients.

This hearing is slated to commence at 10:00 ET on January 23, and is scheduled to continue to January 24, January 31, and February 1. If the IDA determines that discipline penalties are to be imposed it will issue a bulletin giving notice of the penalties assessed, the violations committed and a summary of the facts.