The Ontario Securities Commission on Wednesday issued a Notice of Hearing and a Statement of Allegations against Peterboroug, Ont. resident Andrew Lech.

The hearing, to be held on Friday, May 16, will determine whether the temporary cease trade order issued on May 1, which prohibits Lech from trading in securities, should be extended.

OSC staff allege that Lech has been soliciting and collecting funds for investment purposes from individuals both in Ontario and the United States, and the he uses other individuals to collect investor funds on his behalf.

Lech allegedly represents to investors that he will invest their funds in securities, and offers a guaranteed rate of return on the investment, as well as a guaranteed return of principal. OSC staff allege that Lech has collected at least $25 million in this manner, as well as a further US$20 million from investors in the United States.

Staff also allege that Lech has been trading and advising in securities without registration, making impermissible representations concerning securities, and conducting an illegal distribution of securities.

They further allege that he is failing to provide adequate disclosure to investors concerning his investment activities, including failing to specify how and where their funds are invested, and any risks associated with their investment.

The OC has also asked banks to hold the contents of bank accounts which appear to be associated with Lech’s investment activities. To date, directions have been issued against bank accounts held in Lech’s name, as well as in the names of Daniel Shuttleworth, Dennis Yacknowiec, Gary McNaughton and Richard Gordon. These directions have all been continued by the Superior Court of Justice until June 5.

Copies of the Notice of Hearing and Statement of Allegations are available on the Commission’s website at www.osc.gov.on.ca.