OSC Commences Prosecution Against Emilia von Anhalt and Jurgen von Anhalt

OSC Commences Prosecution Against Emilia von Anhalt and Jurgen von Anhalt  

TORONTO – Staff of the Ontario Securities Commission have initiated a quasi-criminal prosecution against Emilia von Anhalt and Jurgen von Anhalt. These two individuals are former directors and officers of Lydia Diamond Exploration of Canada (Lydia). They remain its majority shareholders.

On May 5, 2005 , an Information was sworn that contained 39 counts against Emilia von Anhalt and 27 counts against Emilia von Anhalt and Jurgen von Anhalt jointly.

Staff of the Commission have alleged that in 2002 and 2003 Emilia von Anhalt made oral representations that securities of Lydia would be listed on an exchange with the intention to effect a sale in those securities contrary to s. 38(3) of the Securities Act (the “Act”) and gave an oral undertaking relating to the future value of Lydia securities with an intention to effect a sale of those securities contrary to s. 38(2). Staff of the Commission have also alleged that since November 19, 2002, she traded Lydia securities while unregistered to trade in securities contrary to s. 25(1), traded securities of Lydia without a prospectus contrary to s. 53(1), violated the terms of a Commission Order by trading securities of Lydia, by acting as a director and officer of Lydia, and failing to resign as a director or officer of an issuer contrary to s. 122(1)(c).

Staff of the Commission have alleged that since November 19, 2002, Jurgen von Anhalt traded Lydia securities while unregistered to trade securities contrary to s. 25(1), traded Lydia securities without a prospectus contrary to s. 53(1), violated the terms of a Commission Order by trading Lydia securities and failing to resign as a director or officer of an issuer.

The background to these charges is that on November 19, 2002, after a ten-day Commission hearing, the Commission determined that Emilia von Anhalt and Jurgen von Anhalt had not complied with Ontario securities law. The Commission also determined that it was in the public interest to order that Emilia von Anhalt and Jurgen von Anhalt cease trading securities for twelve years subject to certain conditions, resign as director and officer of any issuer, and be prohibited from being or acting as a director or officer of any issuer for 15 years.

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