A panel of the Alberta Securities Commission has denied an application by Peter Workum and Theodor Hennig to stay proceedings or dismiss allegations against them in connection with a hearing that has been ongoing since December 2003.

Workum is a former CEO, and Hennig is a former CFO of Proprietary Industries Inc. (PPI). The pair face allegations that they were responsible for PPI filing financial statements with the ASC that were not prepared in accordance with generally accepted accounting principles and filing material that contained misrepresentations.

In May 2005, the two respondents filed an application requesting that the hearing be dismissed on the grounds of institutional bias, lack of procedural fairness and deprivation of certain constitutional rights.

In its decision, the Panel found no evidence to support the duo’s claims and dismissed the respondents’ application.

The hearing is scheduled to continue on September 8, 2005.

The Decision and reasons are available on the ASC Web site.