News Release

Vancouver – The executive director of the British Columbia Securities Commission has issued a notice of hearing alleging that a B.C.-based company and its two directors breached securities laws by selling securities without being registered. 

The notice alleges that JV Raleigh Superior Holdings Inc. entered into loan agreements with numerous investors between July 2006 and January 2009, raising approximately $5.7 million. The company’s two directors, Maisie Smith (aka Maizie Smith) and Ingram Jeffrey Eshun, each owned 50 per cent of JV Raleigh. Like the company, neither were registered to sell securities in B.C.

The notice also alleges that under the loan agreements, JV Raleigh was to borrow money from investors to purchase “consumer secured notes receivable”, which JV Raleigh described as “a form of factoring” with typically “high yields.” The company would also provide investors a monthly “return of capital” payment, and return the balance of the investment, plus interest, at a later date. The loan agreements are securities as defined under the Securities Act.

Furthermore, the notice alleges:

• Smith, a resident of Langley, B.C., met with investors, assisted them in entering the Loan Agreements, signed the Loan Agreements on behalf of JV Raleigh, and opened B.C. bank accounts where investor funds were deposited. Smith was also an authorized signatory on those accounts.
• Eshun, a resident of Ontario, opened the bank accounts with Smith and was an authorized signatory.

These allegations have not been proven. Counsel for the executive director will apply to set dates for a hearing into the allegations before a panel of commissioners on November 14, 2011 at 9:00am.

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 JV Raleigh, Maisie/Maizie Smith, Eshun or 2011 BCSECCOM 482 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).

If you have questions, contact Richard Gilhooley, media relations, 604-899-6713. For public inquiries, call 604 899 6854 or 1 800 373 6393 (toll free).

Learn how to protect yourself and become a more informed investor at www.investright.org