British Columbia Securities Commission

British Columbia Securities Commission

December 27, 2006 13:21 ET

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

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 27, 2006) - The Executive Director of the British Columbia Securities Commission has issued a notice of hearing alleging that two B.C. men defrauded and illegally distributed securities to investors.

The BCSC notice of hearing says that, from May 2001 to June 2003, Virtual Community Exhibitions Inc. (VCE), Ralph Kelly and Raymond Patrick Shaw allegedly distributed 510,100 shares of VCE to B.C. investors and raised about $418,440 without being registered and without a prospectus, contrary to requirements of the Securities Act.

The notice states that Kelly was the President and a director of VCE from April 2001 to March 2006. It alleges that VCE, a B.C.-incorporated company, and a host of affiliated companies purported to create a virtual trade show and advertising website with product purchasing and delivery features. It also alleges that Kelly was in charge of VCE and the affiliated companies.

The notice alleges that VCE, Kelly and Shaw made false statements about VCE and the affiliated companies in distributing the securities. The notice also alleges that Kelly and Shaw fraudulently used the money raised from investors to pay themselves, Kelly's ex-wife and others - including paying rent, fees and some of the purchase price of Kelly's home in Parksville as well as paying for improvements to the residence.

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.

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
    (604) 899-6880 or Toll Free (B.C. & Alberta): 1-800-373-6393
    Website: www.bcsc.bc.ca