The Ontario Securities Commission has released reasons for its order dated July 8, issued against Mark Valentine. Valentine was the Chairman and largest shareholder of Thomson Kernaghan & Co. Ltd. The brokerage is now in bankruptcy.

On June 17, the commission issued a temporary order suspending Valentine’s registration as a stockbroker, and requiring him to cease trading in securities for a period of 15 days.

On July 2 and July 8, the commission convened a hearing to consider whether the temporary order should be extended. At the conclusion of the hearing, the commission issued an order extending the temporary order until at least January 31, 2003, to allow OSC staff to continue their investigation of Valentine’s actions.

In its reasons for decision, the commission reviewed the evidence presented concerning Valentine’s role as the registered representative for four private funds, namely the Canadian Advantage Limited Partnership, Advantage (Bermuda) Fund Ltd., VC Advantage Fund Limited Partnership and the VC Advantage (Bermuda) Fund Ltd. It also considered evidence concerning Valentine’s role in the financing of JAWZ Inc.

The commission found that it was “satisfied that OSC staff has provided sufficient evidence of conduct that may be harmful to the public interest and, accordingly justifies an extension of the temporary order. There is little doubt that additional time is required to complete the investigation and, unless the temporary order is extended, there is a reasonable likelihood that Valentine’s alleged objectionable conduct may continue. Such conduct would present a serious risk to the integrity of Ontario’s capital markets as well as to the protection of the public interest”.