Order: In the Matter of Energy Syndications Inc. et al.

Order






IN THE MATTER OF THE SECURITIES ACT,
R.S.O. 1990, c. S.5, as amended

- and –

IN THE MATTER OF ENERGY SYNDICATIONS INC.,
GREEN SYNDICATIONS INC., SYNDICATIONS CANADA INC.,
DANIEL STRUMOS, MICHAEL BAUM
and DOUGLAS WILLIAM CHADDOCK

ORDER
(Sections 127 and 127.1 of the Securities Act)



    WHEREAS on March 30, 2012, the Ontario Securities Commission (the “Commission”) issued a Notice of Hearing, pursuant to sections 127 and 127.1 of the Securities Act, R.S.O. 1990, c. S.5, as amended (the “Act”), in relation to a Statement of Allegations filed by Staff of the Commission (“Staff”) on March 30, 2012 in respect of Energy Syndications Inc. (“Energy”), Green Syndications Inc. (“Green”), Syndications Canada Inc. (“Syndications”), Daniel Strumos, (“Strumos”), Michael Baum (“ Baum”), and Douglas William Chaddock (“Chaddock”) (collectively, the “Respondents”);

    AND WHEREAS the Commission conducted a hearing on the merits with respect to the allegations against the Respondents on May 15, 16, 17, 22, 23 and 29, 2013 (the “ Merits Hearing”);

    AND WHEREAS on June 20, 2013, the Commission issued its reasons and decision on the merits in this matter (the “Merits Decision”);

    AND WHEREAS on June 20, 2013, the Commission ordered that: (i) Staff shall file and serve written submissions on sanctions and costs by July 10, 2013; (ii) the Respondents shall file and serve written submissions on sanctions and costs by July 31, 2013; (iii) Staff shall file and serve written reply submissions on sanctions and costs by August 14, 2013; (iv) the hearing to determine sanctions and costs will be held at the offices of the Commission at 20 Queen Street West, 17th floor, Toronto, on September 4, 2013, at 10:00 a.m., or such further or other dates as agreed by the parties and set by the Office of the Secretary; and (v) upon failure of any party to attend at the time and place aforesaid, the hearing may proceed in the absence of that party, and such party is not entitled to any further notice of the proceeding (the “Sanctions and Costs Scheduling Order”);

    AND WHEREAS on July 10, 2013, Staff filed and served written submission on sanctions and costs, along with a draft sanctions and costs order, the affidavit of Michelle Spain sworn July 10, 2013, and a book of authorities, and on July 23, 2013, Staff filed an affidavit of service of Sharon Nicolaides sworn July 23, 2013;

    AND WHEREAS on July 15, 2013, Strumos retained counsel to represent him at the sanctions and costs hearing;

    AND WHEREAS on July 24, 2013, at the request of counsel for Strumos and with the consent of Chaddock, on his own behalf and on behalf of Energy, Green and Syndications, and of Staff, the Commission amended the Sanctions and Costs Scheduling Order by ordering that the date for the Respondents to file and serve written submissions on sanctions and costs is extended to August 16, 2013, and the date for Staff to file and serve reply written submissions on sanctions and costs is extended to August 26, 2013;

    AND WHEREAS on August 16, 2013, Strumos filed and served written submissions on sanctions and costs;

    AND WHEREAS on August 16, 2013, Baum retained counsel to represent him at the sanctions and costs hearing;

    AND WHEREAS on August 20, 2013, at the request of counsel for Baum, and with the consent of Chaddock, on his own behalf and on behalf of Energy, Green and Syndications, and counsel for Strumos, Staff counsel objecting, the Commission ordered that (i) the time for the Respondents to file and serve written submissions on sanctions and costs is extended to 2:00 p.m. on August 29, 2013; and (ii) Staff need not file and serve written reply submissions on sanctions and costs, but may give oral reply submissions at the sanctions and costs hearing on September 4, 2013;

    AND WHEREAS on August 29, 2013, Baum filed and served written submissions on sanctions and costs, along with the transcript of Baum’s compelled examination on November 11, 2008;

    AND WHEREAS on August 30, 2013, Chaddock, on his own behalf and on behalf of Energy, Green and Syndications, requested an adjournment of the sanctions and costs hearing to allow him to obtain and review new evidence which may be relevant to his submissions on sanctions and costs, and on September 2, 2013, Chaddock filed and served one of the documents on which he intends to rely;

    AND WHEREAS on September 3, 2013, Baum requested an adjournment to allow him to obtain and review the same new evidence identified by Chaddock, which he submits is also relevant to his submissions on sanctions and costs;

    AND WHEREAS on September 4, 2013, Staff counsel, Chaddock, on his own behalf and on behalf of Energy, Green and Syndications, and Strumos and counsel for Strumos, appeared before the Commission to give oral submissions in respect of the adjournment request, counsel for Baum having given previous notice that neither he nor Baum would attend;

    AND WHEREAS on September 4, 2013, counsel for Strumos and counsel for Baum consented, and Staff objected to the adjournment request;

    AND WHEREAS , upon considering the submissions of the Respondents and Staff, it is the opinion of the Commission that it is in the public interest to grant the adjournment request and reschedule the sanctions and costs hearing to allow the Respondents and Staff a reasonable opportunity to obtain and review the new evidence and to address its admissibility and relevance, and the weight it should be given, in their written submissions or amended written submissions on sanctions and costs;

    IT IS ORDERED THAT :

    1.     by September 25, 2013, Chaddock shall produce to Staff, Strumos and Baum all the documents on which he intends to rely at the sanctions and costs hearing;

    2.     by October 3, 2013, Chaddock shall file and serve his written submissions on sanctions and costs;

    3.     by October 8, 2013, Baum shall file and serve additional or amended submissions on sanctions and costs;

    4.     by October 17, 2013, Staff shall file and serve written reply submissions on sanctions and costs;

    5.     by October 23, 2013, at 11:00 a.m., Strumos shall file and serve additional or amended submissions on sanctions and costs; and

    6.     the sanctions and costs hearing is adjourned to October 24, 2013, at 10:00 a.m., or such other date as agreed by the parties and fixed by the Office of the Secretary.

    DATED at Toronto this 5th day of September, 2013.



" Alan J. Lenczner"
Alan J. Lenczner, QC