Buckingham Securities Corporation - Court Appointment of BDO Dunwoody Limited as Receiver and Manager

Pour diffusion immédiate Before the Court OSC

Toronto - The Ontario Securities Commission today made an application to the Ontario Superior Court of Justice (the "Court") for the appointment of BDO Dunwoody Limited as Receiver and Manager of Buckingham Securities Corporation ("Buckingham"). Following the hearing today, which was not opposed by Buckingham, the Court appointed BDO Dunwoody Limited as Receiver and Manager of Buckingham.

At a hearing before the Commission held Friday, July 20, 2001, the Commission extended the Temporary Order made by the Commission on July 6, 2001, suspending the registration of Buckingham and prohibiting trading in any securities by Buckingham, Lloyd Bruce ("Bruce"), the President and compliance officer of Buckingham, David Bromberg ("Bromberg"), a salesperson and a director of Buckingham and Harold Seidel ("Seidel").

As stated in the Temporary Order issued on July 6, 2001 (and extended today by the Commission) Buckingham has a capital deficiency of at least $1 million as at May 31, 2001, and Buckingham has failed to segregate securities held for its clients as required under Ontario securities law.

The Temporary Order further states that securities owned by clients of Buckingham are held in an account or accounts in the name of Buckingham with the following brokers: Rampart Securities Inc., W.D. Latimer Co. Limited, Canaccord Capital Corporation, BMO Nesbitt Burns Inc., Bear, Stearns & Co. Inc., Dundee Securities Corporation and Laurentian Bank Securities Inc. (collectively, referred to as the "Brokers"). Buckingham has liabilities in relation to some of the accounts and it appears that securities owned by clients are being used as security for such liabilities. The Commission also extended the Temporary Order that trading by the Brokers cease, on the term that trading cease by the Brokers only in respect of securities held in an account or accounts in the name of Buckingham with each of the Brokers.

The hearing of the matter before the Commission has been adjourned.

A copy of the Notice of Hearing issued July 6, 2001, the Temporary Order dated July 6, 2001 and the Order of the Commission dated July 20, 2001 extending the Temporary Order, is available at the Commission's website at www.osc.gov.on.ca or from the Commission, 19th Floor, 20 Queen Street West, Ontario.
 

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Director, Enforcement Branch
416-593-8156
  Frank Switzer
Director, Communications
416-593-8120
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416-369-3053
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