Swift Trade founder accused of misleading OSC JANET MCFARLAND Globe and Mail Update December 7, 2007 at 11:49 AM EST The Ontario Securities Commission has accused the founder of electronic trading company Swift Trade Securities Inc. of misleading the commission about the identity of his company's largest client. In a statement of allegations issued Friday, the OSC said Swift Trade president Peter Beck told the commission last year that his company's largest client â accounting for half the traders executing trades through Swift Trade â was Barka Co. Ltd., controlled by a Cypriot company owned by Pavlos Aristodemou. The OSC alleged Mr. Beck failed to disclose his wife or father were beneficial owners of Barka. âStaff allege that at no time during the examination did Beck ever mention his wife or father were the beneficial owner(s) of the shares of Barka,â the statement of allegations says. Mr. Beck could not immediately be reached for comment. The OSC statement does not suggest why Mr. Beck misstated Barka's ownership. The OSC says it questioned Mr. Beck under oath last December, and Mr. Beck indicated Mr. Aristodemou was the âdirecting or controlling mindâ behind Barka, and that Barka received all the profits from the trading activities. The OSC alleges, however, that Barka was never in a traditional arms length client/dealer relationship with Swift Trade. The OSC alleges Mr. Aristodemou was âmerely a nominee shareholder acting upon the direction of others, and was not the directing or controlling mind of Barka.â Swift Trade has about 2,000 proprietary traders who trade for Swift Trade clients, who are corporate investors. The traders are described as independent contractor traders who are hired by the clients. They work at Swift Trade offices and use the company's software and electronic trading platform. The OSC said in 2006, Barka employed about 1,100 traders on its behalf, making it Swift Trade's largest client. The OSC said Barka operated about 50 international offices, including 30 offices in Canada. Mr. Beck is accused of conduct contrary to Ontario securities law and contrary to the public interest for making âmisleading or untrueâ representations to the OSC and failing âto state facts that were required to be stated or that were necessary to make the statements not misleading.â The OSC has scheduled a hearing in the matter for Jan. 18. The notice of hearing says the commission will consider a range of possible penalties, including suspending or restricting the registration of Mr. Beck or Swift Trade, prohibiting them from trading securities, or requiring them to pay penalties. Is anyone surprised by this? Only a matter of time I guess. Have fun looking for work you Swift "traders".