The Ontario Securities Commission has issued a further Notice of Hearing and an amended Statement of Allegations against the former chairman of Thomson Kernaghan & Co. Ltd., Mark Valentine. The firm is now in bankruptcy.

On June 17, 2002 the commission issued a temporary order prohibiting Valentine from trading in securities with certain exemptions and suspending his registration under Ontario securities law. On July 8, 2002, the commission extended the temporary order until at least Jan. 31, 2003 to allow Staff to continue its investigation into the matters raised in the Statement of Allegations.

A hearing will be held on Thursday, January 30, to consider whether the temporary order should be further extended. Staff of the commission are requesting that the order be extended to July 31, 2003, in order to permit them to continue and complete their investigation.

In addition, new allegations have been added to the Statement of Allegations which allege that Valentine has breached the existing cease trade order by trading in futures contracts listed on the Chicago Mercantile Exchange.

Staff allege that this violation occurred shortly after the commission hearing in July, 2002. As a result, OSC staff are requesting that Valentine not be granted any of the trading exemptions which were provided in the original July cease trading order.

Copies of the Notice of Hearing and amended Statement of Allegations are available on the commission’s web site.

www.osc.gov.on.ca