Statement of Allegations: In the Matter of Andrew Cheung

Statement of Allegations
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IN THE MATTER OF THE SECURITIES ACT
R.S.O. 1990, c. S. 5, AS AMENDED

- AND -

IN THE MATTER OF
ANDREW CHEUNG

STATEMENT OF ALLEGATIONS
OF STAFF OF THE ONTARIO SECURITIES COMMISSION

 

Staff of the Ontario Securities Commission make the following allegations:

  • 01 Communiqué Laboratory Inc. (“01 Communiqué”) is a reporting issuer in Ontario.
  • Andrew Cheung (“Cheung”) has been the president of 01 Communiqué since October 7, 1992. Cheung is the beneficial owner of a company called Global Genius Investments Ltd. (“GGI”).
  • Between November 14, 2003 and October 7, 2004, GGI conducted 21 transactions in the shares of 01 Communiqué.
  • Section 107(2) of the Ontario Securities Act, R.S.O. 1990, c. S. 5, as amended (the “Act”) required Cheung to file a report of each change in his direct or indirect beneficial ownership of the reporting issuer, 01 Communiqué. Section 107(2) required Cheung to file the reports within 10 days from the day the change took place.
  • Notwithstanding that he executed 21 trades in 01 Communiqué through GGI between November 2003 and October 2004, Cheung has not filed any section 107(2) reports in respect of those trades.
  • By failing to file insider trading reports as required by section 107(2), Cheung has repeatedly breached Ontario securities law and engaged in conduct contrary to the public interest.

 

DATED AT TORONTO this 15th day of March, 2005.