VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 17, 2012) - The executive director of the British Columbia Securities Commission has issued a notice of hearing alleging that Jeffrey Karl Wiegel and Michael Jerome Knight, both from B.C., and four real estate development companies illegally traded and distributed securities. The notice further alleges that Wiegel and Knight committed fraud, and that Knight breached a BCSC order.
In the notice of hearing, BCSC staff allege that between October 2006 and August 2010, Wiegel and Knight:
- Illegally raised approximately $2,085,000 by distributing securities of 0772835 B.C. Ltd. to 32 B.C. residents;
- Illegally raised approximately $1,940,000 by distributing securities of Local 1661 Building Inc. to 21 people, the majority of whom were B.C. residents;
- Illegally issued a security in the form of a promissory note on behalf of Almaval Building Inc. to two 0772835 Ltd. investors in respect of a $100,000 loan; and
- Committed fraud by falsely claiming that a promissory note would be secured by a mortgage on land located at 3701 West Broadway, Vancouver.
The notice further alleges that Knight breached an April 5, 2004 order that prohibited him from engaging in acts in furtherance of a trade or in investor relation activities for a period of three years.
The notice says that Jeffrey Karl Wiegel, an officer and director of the four companies named in the notice, has never been registered to sell securities in B.C. The notice also says that Michael Jerome Knight, a mutual funds registrant between 1992 and 1994, was not registered during the relevant period. Furthermore, none of the companies named in the notice has ever filed a prospectus in B.C.
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 by typing Jeffrey Karl Wiegel, Michael Jerome Knight, Streamline Properties Inc, 0772835 B.C. Ltd, Local 1661 Building Inc, Almaval Building Inc. or 2012 BCSECCOM 360 in the search box. Information regarding disciplinary proceedings can be found in the Enforcement section of the BCSC website.
Please visit the Canadian Securities Administrators' Disciplined Persons List for information relating to persons disciplined by provincial securities regulators, the Investment Industry Regulatory Organization of Canada (IIROC) and the Mutual Fund Dealers Association (MFDA).
For media inquiries, please contact Richard Gilhooley, media relations, 604-899-6713. For public inquiries, please call 604 899 6854 or 1 800 373 6393 (toll free).
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