Temporary Order: In the Matter of ASL Direct Inc.

Order
 

 

 

 

IN THE MATTER OF THE SECURITIES ACT
R.S.O. 1990, c.S.5, AS AMENDED

- and -

ASL DIRECT INC.


TEMPORARY ORDER
(Sections 127(1) and (5))

 

 


      WHEREAS it appears to the Ontario Securities Commission (the “Commission”) that on April 22, 2008, the Commission made a Temporary Order pursuant to section 127(5) of the Securities Act, R.S.O., 1990 c.S.5, as amended (the “Act”) against Adrian Samuel Leemhuis, Future Growth Group Inc., Future Growth Fund Limited, Future Growth Global Fund Limited, Future Growth Market Neutral Fund Limited, Future Growth World Fund (collectively, the Respondents) that all trading in securities of the Non-Individual Respondents cease and trading in any securities by the Respondents cease and that any exemptions contained in Ontario securities law do not apply to the Respondents.

      AND WHEREAS it appears to the Ontario Securities Commission (the “Commission”) that:

 

 

 

  1. Adrian Samuel Leemhuis (“Leemhuis”) is a Canadian resident.
  2. ASL Direct Inc. (“ASL”) is a corporate entity whose President, sole shareholder and director, is Leemhuis;
  3. ASL is registered with the Commission as a Mutual Fund Dealer and a Limited Market Dealer, with its head office located in Toronto, Canada;
  4. Leemhuis is the directing mind of ASL and the Respondents;
  5. Staff are conducting an investigation of the Respondents and ASL. Based on Staff’s investigation to date, it appears that:
    1. ASL and the Respondents have traded in securities and participated in unlawful distributions of securities contrary to sections 25 and 53 of the Act;
    2. ASL has, directly or indirectly, facilitated this unlawful activity by actively assisting the Future Growth Group of Funds dealing with investors;
    3. ASL has conducted activity in breach of OSC Rule 31-505 – Conditions of Registration, Part 2 – the duty to deal fairly and honestly and in good faith with its clients by not paying certain amounts promised and owed to such clients for 18 months;
    4. Leemhuis and ASL have failed to disclose their involvement in the Future Growth Group and related securities activities in their filings with the Commission;
    5. Leemhuis and ASL have misrepresented to the Mutual Fund Dealers Association (“MFDA”) staff during compliance reviews as to the members involvement in other securities related activities and entities such as their involvement in the Future Growth Group;
    6. MFDA staff have noted inadequate record keeping and supervision based on compliance reviews by MFDA staff that noted serious concerns in respect of trade supervision and trade records, including lack of evidence of client trade instructions; and
    7. ASL is not financially viable or solvent based on its lack of profits to date and its inability to resolve a capital deficiency of approximately $42,562, which was identified in the independent audit for the year ended December 31, 2007.
  6. The Commission is of the opinion that it is in the public interest to make this order and that the time required to conclude a hearing could be prejudicial to the public interest.


      AND WHEREAS by Commission Order made By Authorization Order made April 1, 2008, pursuant to subsection 3.5(3) of the Act, each of W. David Wilson, James E. A. Turner, Lawrence E. Ritchie, Paul K. Bates and David L. Knight, acting alone, is authorized to make orders under section 127(5) of the Act.;

      IT IS ORDERED pursuant to section 127(5) of the Act that:

  1. Under paragraph 2 of section 127(1), trading in any securities by ASL Direct Inc. shall cease; and
  2. Under paragraph 3 of section 127(1), any exemptions contained in Ontario securities law do not apply to ASL Direct Inc.


      IT IS FURTHER ORDERED that pursuant to section 127(6) of the Act this order shall take effect immediately and shall expire on the fifteenth day after its making unless extended by order of the Commission.

DATED at Toronto this 1st day of May, 2008.

 

 

 

 

  "   David Wilson   "  
W. David Wilson