British Columbia Securities Commission

British Columbia Securities Commission

March 23, 2005 08:30 ET

British Columbia Securities Commission: Former Company Chief Executive and Director Settles with Commission


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: BRITISH COLUMBIA SECURITIES COMMISSION

MARCH 23, 2005 - 08:30 ET

British Columbia Securities Commission: Former Company
Chief Executive and Director Settles with Commission

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 23, 2005) - The
British Columbia Securities Commission has settled with a former officer
and director of a TSX Venture Exchange-listed company for failing to
properly disclose company payments for investor relations activities to
a firm he owned.

Daniel Brennan Matthews cannot be a director or officer of any issuer
nor can he engage in any investor relations activities for at least five
years. He has also agreed to pay the BCSC $25,000.

In the settlement with the BCSC, Matthews admitted that he breached
securities laws when he allowed Jalna Resources Ltd. to file inaccurate
and inconsistent financial statements that were misleading about
investor relations services for the company. Matthews was the public
company's chief executive officer, president or a director during the
period when Jalna failed to properly disclose details about an agreement
for investor relations services that Jalna had with Incite Marketing
Group Inc., a private company owned by Matthews.

In March 2000, Matthews directed Jalna to advance $350,000 (U.S.) to
Incite for investors relations services. Jalna did not publicly disclose
this agreement or file details of it with the TSX Venture Exchange as
required. Jalna did not file a material change report with the BCSC
describing the agreement as required under securities laws.

Neither Jalna nor Matthews disclosed that the agreement was a non
arms-length transaction and there was no written, signed contract
detailing the nature or the specific activities that Incite was to
provide Jalna. Matthews, as an officer or director of Jalna, was
responsible for the company breaching securities laws and stock exchange
regulations.

Matthews resigned as Jalna's CEO and president on April 20, 2000, and as
a director on Feb. 26, 2001.

The B.C. Securities Commission is an independent provincial government
agency responsible for regulating trading in securities within the
province. You may view the settlement on our website www.bcsc.bc.ca by
typing in the search box, Daniel Brennan Matthews or 2005 BCSECCOM 169.
If you have questions, contact Andrew Poon, Media Relations,
604-899-6880.

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Contact Information

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