British Columbia Securities Commission

British Columbia Securities Commission

May 02, 2008 12:30 ET

British Columbia Securities Commission Executive Director's Bulletin: Securities Regulator Gives Notice of Hearing Into Alleged Misleading Statements by B.C. Company and Its Directors

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 2, 2008) - The executive director of the British Columbia Securities Commission has issued a notice of hearing alleging that two directors of a B.C.-based company allowed it to make misleading statements when it distributed securities to investors.

The notice of hearing says that, from May 2002 to September 2005, Canadian Rockport Homes Int'l, Inc. (Rockport), a Nevada corporation with a Vancouver head office, distributed about $4.4 million US in securities to investors in B.C and elsewhere. At the time of the distributions, William Malone was Rockport's chairman, CEO and president, and Nelson Riis was an officer and director of the company.

The notice alleges that Rockport made false and misleading financial projections in offering memoranda (OM), business plans, and an executive summary. It also alleges the company made false and misleading claims in newsletters, business plans and the executive summary. Additionally, the notice alleges the OMs were not in the correct form.

As officers and directors of Rockport, Malone and Riis were responsible for the company's disclosure to investors and its securities filings. The notice alleges Malone and Riis contravened securities laws and acted contrary to the public interest when they allowed Rockport to disseminate and file the materials described in the allegations.

These allegations have not been proven. Counsel for the executive director will set dates for a hearing into the allegations on May 28, 2008 at 1 p.m. 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 Ken Gracey, Media Relations, 604-899-6577.

Learn how to avoid investment fraud at the BCSC's investor education website: www.investright.org.

Contact Information

  • British Columbia Securities Commission
    Ken Gracey
    (604) 899-6577 or (B.C. & Alberta) 1-800-373-6393
    Website: www.bcsc.bc.ca