Securities Law & Instruments

IN THE MATTER OF

THE SECURITIES ACT

R.S.O. 1990, C S.5, AS AMENDED

AND

IN THE MATTER OF

BRIAN ANDERSON, LESLIE BROWN,DOUGLAS BROWN, DAVID SLOAN AND

FLAT ELECTRONIC DATA INTERCHANGE(a.k.a. F.E.D.I.)

 

TEMPORARY ORDER

Subsection 127(1) & 127(5)

WHEREAS it appears to the Commissionthat:

1. Brian Anderson is a person resident inWhite Rock, British Columbia who attends in the Province ofOntario for the purpose of making presentations to Ontarioresidents;

2. Leslie Brown is a person resident in Paris,Ontario;

3. Douglas Brown is a person resident in Paris,Ontario;

4. David Sloan was present in Ontario on June4, 2003;

5. On the evening of June 4, 2003, the individualRespondents conducted a presentation (the Presentation) inrespect the Flat Electronic Data Interchange ("F.E.D.I.")at the Wyndham Bristol Place Hotel, Etobicoke;

6. At the Presentation, the documents attachedto this order were made available to persons attending theseminar:

i) "What is F.E.D.I. and How Do TheyMake Their Income?" (Schedule A)

ii) "F.E.D.I. Flow Chart" (ScheduleB)

iii) "Bank Wire Coordinates" (ScheduleC)

iv) "Bank Wire Transfer Procedure"(Schedule D)

v) "Joint Venture Agreement" (ScheduleE)

vi) "Email from Gordon Rothwell datedMay 15, 2003" (Schedule F)

vii) "Email from bjanderson dated April17, 2003" (Schedule G)

viii) "Email from Brian D. Andersondated May 13, 2003" (Schedule H)

7. Persons who attended the Presentation weretold that F.E.D.I. is a scriptural based public trust;

8. Persons who attended the Presentation wereinvited to participate in F.E.D.I., which was described asthe Flat Electronic Data Interchange. It was purported thatF.E.D.I. will become the world's fifth Electronic Data Interchangeand that it would be the first such exchange to be backedby gold;

9. Persons who attended the Presentation weretold that F.E.D.I. will be servicing the Arab world and thatit has been funded by contributions made by major Arab familiesin the amount of $500,000,000 (US), backed by gold;

10. Persons who attended the Presentationwere invited to participate in F.E.D.I. by making an investmentof $125,000 (US), which investment would provide the investorwith a seat or desk (the "Desk") on F.E.D.I.;

11. Persons who attended the Presentationwere told that F.E.D.I. would be operational in July, 2003;

12. Persons who attended the Presentationwere told that their investments would be fully insured byAON Reed Stenhouse of Canada;

13. Persons who attended the Presentationwere told that the opportunity to purchase a Desk was limited,that only 20 Desks remained and that their investment mustbe made by the weekend of June 7, 2003;

14. Persons who attended the Presentationwere told that their principal investment would be returnedin October, 2003 and that they would receive income from theirinvestment at the rate of 30% per month, for a ten year period;

15. As set out in Schedule E, the Joint VentureAgreement represents, among other representations, that:

I [Brian Anderson] have done my due diligenceand asked all the hard questions. There is no downside tothis program. In the event of failure of any kind, our investmentcapital will be returned to us within 30 banking days..."

16. The Desks are securities as defined bythe Securities Act,

17. Persons who attended the Presentationwere not provided with a prospectus which would qualify aDesk for sale in Ontario;

18. The Respondents are not registered pursuantto the Securities Act for the purpose of trading securitiesin the Province of Ontario;

19. The sales of Desks are being made in breachof sections 25 and 53 of the Securities Act, R.S.O.1990 c.S.5;

AND WHEREAS the Commission is of theopinion that the time required to conclude a hearing could beprejudicial to the public interest;

AND WHEREAS by Commission Order madeMarch 9, 2001, pursuant to section 3.5(3) of the Act,any one of David A. Brown, Howard Wetston or Paul Moore, actingalone, is authorized to make orders under section 127 of theAct;

AND WHEREAS the Commission is of theopinion that it is in the public interest to make this order;

IT IS ORDERED pursuant to subsection127(5) of the Act that:

i) pursuant to subsection 127(1)2 all tradingby the Respondents in Seats shall cease; and

ii) pursuant to subsection 127(1)5(ii) theRespondents shall not provide to a person or company copiesof those documents attached hereto as schedules A to H

IT IS FURTHER ORDERED that pursuant tosubsection 127(6) of the Act this order shall take effectimmediately and shall expire on the fifteenth day after itsmaking unless extended by order of the Commission.

June 5, 2003.

"Paul Moore"

[Schedules A-H are not reproduced in this publicationbut can be found in OSC's website at www.osc.gov.on.ca]