British Columbia Securities Commission

British Columbia Securities Commission

November 03, 2006 14:49 ET

BCSC Executive Director's Bulletin: Securities Regulator Gives Notice of a Hearing Into Alleged Investment Fraud

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 3, 2006) - The Executive Director of the British Columbia Securities Commission has issued a notice of hearing alleging that two Abbotsford, B.C. men and a Virginia, U.S. man are violating securities laws in selling and promoting to B.C. residents what appears to be a Prime Bank investment scheme.

The notice of hearing alleges that, Daniel Eric Byer and Malcolm Cameron Boyd Stevenson - both Abbotsford residents - along with Preston Pinkett II, of Virginia, are committing fraud in promoting and selling investments in International Fiduciary Corp., S.A. (IFC) to B.C. residents. The IFC Investment purports to be a minimum $100,000 (U.S.) investment in an "asset growth program" that buys and sells "1st Tier medium-term bank notes" yielding a monthly return of six per cent.

The notice alleges that at least two B.C. investors have placed over $310,000 (U.S.) into IFC Investment, a Virginia-based company.

The notice outlines how IFC Investment advertises many characteristics indicative of a Prime Bank investment scheme (which are fictional investments). It points out that secret, exclusive overseas markets for discounted financial instruments do not exist. Prime Bank investment promoters entice investors with claims such as: An opportunity to be part of a select group in an investment program normally reserved for the rich or financial institutions; promise of high returns; guarantee that investor capital are not at risk; and, use of investors' funds to leverage offshore trading in bank notes.

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.

In the meantime, a cease-trade order is in place until Nov. 16, 2006 against trading in the IFC Investment in B.C. and for Byer, Stevenson and Pinkett to cease all investor relations activities on behalf of IFC.

The B.C. Securities Commission is the independent provincial government agency responsible for regulating trading in securities within the province. You may view notices of hearings on our website www.bcsc.bc.ca. If you have questions, contact Andrew Poon, Media Relations, 604-899-6880.


Contact Information

  • British Columbia Securities Commission
    Andrew Poon
    Media Relations
    (604) 899-6880 or (B.C. & Alberta) 1-800-373-6393
    Website: www.bcsc.bc.ca