British Columbia Securities Commission

British Columbia Securities Commission

June 03, 2005 09:30 ET

British Columbia Securities Commission: Two Men Ordered Out of B.C. Capital Market

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - June 3, 2005) - The British Columbia Securities Commission has reached settlements with two B.C. men who admitted to breaching securities laws as part of their activities in raising close to $27-million from investors in B.C. and elsewhere.

James Nelson McCarney is banned from trading in securities and he cannot be a director or officer of any issuer nor can he engage in any investor relations activities for at least 20 years except in limited circumstances. He must also pay the BCSC $100,000.

Trevor William Park is banned from trading in securities and he cannot be a director or officer of any issuer nor can he engage in any investor relations activities for at least 12 years except in limited circumstances. He must pay the BCSC $5,000. Park's settlement noted that he would have faced a sanction of $75,000 had there been any reasonable prospect that he could pay that amount for his misconducts.

The pair admitted violating securities laws, including acting contrary to the public interest, when they solicited 253 B.C. residents to invest about $4.5-million in 526053 B.C. Ltd., a B.C. numbered company owned by McCarney, without a prospectus and without being registered to trade securities. In all, they directly and indirectly raised about $26.6-million from 1,435 investors in seven provinces and other worldwide locales.

McCarney and Park also violated securities laws when they did not tell investors that money invested in the numbered company was used to settle a lawsuit involving another company on which McCarney served as an officer and director.

McCarney and Park also acted contrary to the public interest in a scheme that sidestepped regulatory authority by using out-of-province addresses to disguise that they were selling to Saskatchewan residents.

McCarney's settlement discloses that he has a regulatory history with a still-effective cease-trade order levied against him by the BCSC in 1999.

Park, a former mutual fund salesperson, acted as an agent and practiced investor relations in promoting and getting people to invest in McCarney's numbered company. Park also admitted in his settlement that he made a false statement in a record that was filed with the BCSC.

The numbered company has also been cease-traded for at least 20 years.

The B.C. Securities Commission is the independent provincial government agency responsible for regulating trading in securities within the province. You may view the settlements on our website http://www.bcsc.bc.ca by typing in the search box the names of the individuals and companies above or 2005 BCSECCOM 370 & 373. If you have questions, contact Andrew Poon, Media Relations, 604-899-6880.


Contact Information

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