British Columbia Securities Commission

British Columbia Securities Commission

November 10, 2010 12:38 ET

BCSC Executive Director's Bulletin: Securities Regulator Alleges Illegal Phone Room Activity, Illegal Distributions, and Misrepresentations

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 10, 2010) - The executive director of the British Columbia Securities Commission has issued a notice of hearing alleging that a B.C. man and the company he controlled violated securities laws when they sold approximately $1.9 million in securities to investors.

The notice of hearing alleges that Thomas Joseph Sears, a B.C. resident and the president of Royal Crown Ventures Group Ltd. (RCV), operated an illegal phone room that employed sales agents to solicit funds for the company.

The notice says that, from June 2007 to September 2008, RCV, a private B.C. incorporated company, raised approximately $1.9 million by distributing its shares to 95 investors, 56 of whom were B.C. residents. The notice alleges that RCV and Sears traded and illegally distributed the securities because the company did not qualify for the registration and prospectus exemptions allowed under B.C. securities laws.

Finally, the notice alleges Sears and RCV made various misrepresentations to investors through the company's website, e-mails, and video presentations.

These allegations have not been proven. Counsel for the executive director will apply to set dates for a hearing into the allegations before a panel of commissioners on Nov. 23, 2010.

The B.C. Securities Commission is the independent provincial government agency responsible for regulating trading in securities within the province. You may view the notice of hearing on our website, www.bcsc.bc.ca. If you have questions, contact Ken Gracey, media relations, 604-899-6577.

Contact Information

  • British Columbia Securities Commission
    Ken Gracey
    Media Relations
    604-899-6577 or (Canada) 1-800-373-6393
    www.bcsc.bc.ca