Statement of Allegations: In the Matter of 2950995 Canada Inc. et al.

Statement of Allegations

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

AND

IN THE MATTER OF
2950995 CANADA INC., 153114 CANADA INC., JACKAUSTIN, SUZANNE AYSCOUGH, MARY BRADLEY, GUSTAVO CANDIANI,PATRICIA CARSON, STEPHEN CARSON, LUCY CATERINA, MICHELINECHAREST, MARK CHERNIN, ALISON CLARKE, SUSANNAH COBBOLD, MARIE-JOSÉE CORBEIL, JANET DELLOSA, FRANÇOIS DESCHAMPS, MARIE-LOUISEDONALD, KELLY ELWOOD, DAVID FERGUSON, LOUIS FOURNIER, JEANGAUVIN, JEFFREY GERSTEIN, BENNY GOLAN, MENACHEM HAFSARI, AMIRHALEVY, JERRY HARGADON, KAREN HILDERBRAND, JORN JESSEN, BRUCE J.KAUFMAN, MOHAMED HAFIZ KHAN, KATHY KELLEY, PHILLIP KELLEY, LORIEVANS LAMA, PATRICIA LAVOIE, MICHAEL LÉGARÉ, PIERRE H. LESSARD,CAROL LOBISSIER, RAYMOND McMANUS, MICHAEL MAYBERRY, SHARONMAYBERRY, PETER MOSS, MARK NEISS, GIDEON NIMOY, HASANAIN PANJU,ANDREW PORPORINO, STEPHEN F. REITMAN, JOHN REYNOLDS, MARIO RICCI,LOUISE SANSREGRET, CASSANDRA SCHAFHAUSEN, ANDREW TAIT, LESLEYTAYLOR, KIM M. THOMPSON, DANIEL TIERNEY, BARRIE USHER, RONALD A.WEINBERG, LAWRENCE P. YELIN AND KATH YELLAND

STATEMENT OF ALLEGATIONS OF STAFF OF THE ONTARIO SECURITIES COMMISSION

Staff of the Ontario Securities Commission ("Staff") make the following allegations:

1. CINAR Corporation ("CINAR") is incorporated under the laws of Canada. CINARis a reporting issuer in Ontario. Shares of CINAR trade on the Toronto StockExchange.

2. Each of 2950995 Canada Inc., 153114 Canada Inc., JackAustin, Suzanne Ayscough, Mary Bradley, Gustavo Candiani, Patricia Carson,Stephen Carson, Lucy Caterina, Micheline Charest, Mark Chernin, Alison Clarke,Susannah Cobbold, Marie-Josée Corbeil, Janet Dellosa, François Deschamps,Marie-Louise Donald, Kelly Elwood, David Ferguson, Louis Fournier, Jean Gauvin,Jeffrey Gerstein, Benny Golan, Menachem Hafsari, Amir Halevy, Jerry Hargadon,Karen Hilderbrand, Jorn Jessen, Bruce J. Kaufman, Mohamed Hafiz Khan, KathyKelley, Phillip Kelley, Lori Evans Lama, Patricia Lavoie, Michael Légaré, Pierre H.Lessard, Carol Lobissier, Raymond McManus, Michael Mayberry, Sharon Mayberry,Peter Moss, Mark Neiss, Gideon Nimoy, Hasanain Panju, Andrew Porporino,Stephen F. Reitman, John Reynolds, Mario Ricci, Louise Sansregret, CassandraSchafhausen, Andrew Tait, Lesley Taylor, Kim M. Thompson, Daniel Tierney, BarrieUsher, Ronald A. Weinberg, Lawrence P. Yelin, Kath Yelland are, or were duringthe financial year of CINAR ended November 30, 1999, directors, officers orinsiders of CINAR.

3. Certain of the respondents hold securities of CINAR indirectly through entitiescontrolled by them including Patricia Carson, Stephen Carson, Robert A. Weinberg,Micheline Charest and Phillip Kelley.

4. CINAR failed to file annual financial statements for its financial year endedNovember 30, 1999 (the "1999 financial statements") on or before April 18, 2000,contrary to subsection 78(1) of the Act.

5. By application to the Commission dated April 3, 2000, CINAR requested anexemption from the requirement contained in subsection 78(1) of the Act thatCINAR file its 1999 financial statements on or before July 18, 2000. The requestedrelief has not been granted.

6. By virtue of their relationship to CINAR, each respondent has, or has access to,information regarding the affairs of CINAR that has not been generally disclosed.

7. It would be prejudicial to the public interest to allow the respondents to trade in thesecurities of CINAR until such time as all disclosure required by Ontario securitieslaw has been made by CINAR.

8. It is therefore in the public interest for the Director to order that all trading, whetherdirect or indirect, in the securities of CINAR by the respondents cease until suchtime as CINAR has made all filings it is required to make under Ontario securitieslaw.