After placing a temporary cease trade order on mutual fund dealer ASL Direct earlier this month, the Ontario Securities Commission (OSC) has released its full statement of allegations in regard to the firm.

According to the OSC statement, ASL and its principal Adrian Leemhuis distributed the Future Growth Group of Funds without a receipted prospectus and without an exemption from the requirement for one.

As well, the statement alleges that the Future Growth Group of Funds have traded their securities without a prospectus and without an exemption from the requirement for one.

The OSC also said that Leemhuis and ASL have made materially misleading statements in documents and failed to meet the standard of conduct required of a MFDA member and therefore acted contrary to the public interest.

“Leemhuis and ASL have failed to satisfy the standard of conduct required of a Member and an Approved Person to act fairly, honestly and in good faith with their clients by failing to rebate trailer fee commissions to clients as promised and owed,” reads the OSC statement.

Overall OSC “staff allege that the conduct alleged above constitutes conduct contrary to Ontario securities law and/or conduct contrary to the public interest,” it said in the statement.

Leemhuis and ASL are both based in Ontario and is a member of the MFDA. Future Growth Group Inc., Future Growth Fund Limited, Future Growth Global Fund Limited, Future Growth Market Neutral Fund Limited, and Future Growth World Fund are companies incorporated in the British Virgin Islands. They are fund companies administered by Commonwealth Trust Services Limited, which receives directions from International Financial Capital Ltd., for which Leemhuis is the “directing mind.”