Skip Navigation
About

News Release

BCSC Executive Director’s Bulletin: BCSC shuts down Burnaby phone room and issues temporary order

  • Date:

    2008-05-28

  • Number:

    2008/40

Vancouver - The British Columbia Securities Commission has issued a temporary cease trade order against a Burnaby man and two related companies after investigators seized call sheets, scripts and business records from a Burnaby phone room.

 

Vancouver-based Adcapital Industries Inc., AD Capital U.S. Inc. (Adcapital US) - a Nevada-based corporation with a business address in Burnaby, and Adis Golic, a Burnaby resident and president of Adcapital, are named as respondents in the order and notice of hearing issued by the BCSC today.

 

The notice New window alleges that from November 2007 to May 7, 2008, Adcapital, Adcapital US and Golic operated a phone room at 6929 Royal Oak Avenue, Burnaby, B.C. that promoted Adcapital US securities to potential investors by telephone.

 

Commission staff alleges that phone room operators told potential investors that Adcapital and/or Adcapital US were:

  • seeking to use a muffler technology that would reduce automobile emissions by 97 per cent;
  • doing so well they had to turn down money;
  • preparing to step into a "shell" and trade on the Toronto Stock Exchange; and
  • accepting investors who did not qualify as accredited investors.

On May 7, 2008, BCSC staff executed simultaneous search warrants at the phone room and at Golic’s home. The search teams included RCMP members from the Vancouver Integrated Market Enforcement Team and the Burnaby detachment.

 

The notice New window alleges that the respondents, through their operation and management of the phone room, illegally traded and distributed securities without a prospectus and proper registration thereby contravening the Securities Act.

 

The temporary order New window issued against the respondents prevents them from trading and purchasing any securities or engaging in investor relations activities. Golic is also prohibited from becoming or acting as a director or officer of any issuer nor can he be a registrant or promoter. He is also barred from acting in a management or consultative capacity in the securities market.

 

These allegations have not been proven. The order is in effect until June 3, 2008, at which time the commission will hold a hearing into the matter. The executive director will ask the commission to adjourn the matter and extend the order pending the conclusion of the investigation.

 

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 New window.