News Release

Vancouver – The British Columbia Securities Commission has reached a settlement with a couple convicted in Prince Edward Island of unregistered trading in securities that will see an end to prohibitions against their participation in the B.C. capital markets.

Laurie J. Davis and Ronald G. Davis, of Nova Scotia, have been barred from trading in securities, acting as a director or officer of any issuer, and engaging in any investor relations activity in B.C. since December 2000. The temporary orders against the pair were put in place to prevent them from soliciting investments in a program known as the Personal Empowerment Program (or PEP) from British Columbia residents. The orders also cease-traded the securities of the corporate entities of Davis & Davis Personal and Professional Development Seminars Ltd., Lauron Enterprises Inc., and 3021310 Nova Scotia Inc.

Under the settlement, it was noted that the respondents have complied with the orders that prohibited them from operating in the B.C. capital markets for over four years and they have agreed to comply with the Securities Act.

On Aug. 28, 2002, the P.E.I. Provincial Court found the respondents guilty of trading in securities without being registered as a broker or salesman of a registered broker. The court found that Laurie and Ronald Davis spoke to P.E.I. residents about the PEP program and solicited investments in the form of promissory notes in the program offering a 25 per cent annual rate of return. The promised returns were not paid.

On Oct. 9, 2002, the P.E.I. court imposed the following sentences:

• Laurie Davis to 90 days imprisonment and a fine of $1,000;
• Ronald Davis to 30 days imprisonment and a fine of $1,000; and
• each of the corporate entities to pay a fine of $3,333.

The couple served their sentences in prison and the fines have been paid.

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, Laurie Davis or Ronald Davis or 2005 BCSECCOM 93. If you have questions, contact Andrew Poon, Media Relations, 604-899-6880.

Backgrounder

Before the BCSC’s notice of hearing into this matter was issued on Dec. 1, 2000, staff warned B.C. residents about the unregistered investment that was under investigation at that time in Atlantic Canada.

The BCSC warning, issued on Nov. 17, 2000, detailed how the investment was being sold:

Sold under the name Personal Empowerment Program or PEP, the purported investment is also marketed as Davis and Davis Professional Development Seminars Ltd. (PDSL), Lauron Enterprises Ltd. and 3021310 Nova Scotia Ltd. Regulators estimate as many as 80 people have lost more than $850,000 in these ventures.

Laurie (Jeffers) Davis and Ronald G. Davis, the couple behind the investment offerings, are under investigation by the Securities Division of the Prince Edward Island Attorney General's department for trading in an unlicensed investment product. The Nova Scotia Securities Commission has also issued a cease trade order against the couple.

The Atlantic Canada securities regulators believe other individuals involved in promoting the PEP companies may be moving to British Columbia.

Potential investors are recruited through newspaper ads looking for people who want to work from home or who are interested in careers in "human development." They are sold membership packages that include workbooks, videos, training manuals and other miscellaneous support tools that allegedly enable them to sell PEP packages to others.

Once they become a "PEP member," they are offered "investment blocks" in one of the companies -- PEP, PDSL, Lauron Enterprises or 3021310 Nova Scotia Ltd. Investors are told the companies have huge growth potential and are close to signing lucrative TV contracts for a program promoting PEP. Investors are also promised returns of up to 25 per cent annually.

It advised people contacted about this program to call the BCSC for information.