News Release
BCSC settles with rep who sold clients unsuitable investments
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Date:
2003-05-21 -
Number:
2003/42
Vancouver -- The B.C. Securities Commission has reached a settlement with a broker who sold unsuitable securities, including interests in a cattle ranch resort, to investors in Northern B.C.
Under the settlement, James Rodney Fortin will pay the commission $10,000 and is barred from the securities markets for seven years for:
· selling unsuitable securities to clients,
· participating in an illegal distribution, and
· misrepresenting to clients that certain securities would become publicly-listed and traded on a stock exchange and that these securities would rise in price.
· participating in an illegal distribution, and
· misrepresenting to clients that certain securities would become publicly-listed and traded on a stock exchange and that these securities would rise in price.
Under the ban, Fortin cannot trade securities and is prohibited from engaging in investor relations activities and from being a director or officer of any issuer.
Fortin worked as a broker for IDF Financial Services Incorporated (IDF) based in Prince George, B.C. He sold over $800,000 of securities, including interests in River Ranch Resort Corp. (a cattle ranch resort under development south of Vanderhoof), to mostly Northern B.C. investors. He admitted that he failed to advise some clients that these securities were not suitable for their investment needs and objectives.
Fortin was among those named in a temporary order and notice of hearing issued in 2001. Under the notice, commission staff allege:
· illegal distributions of securities
· selling securities unsuitable to the investment needs and objectives of clients
· misrepresentations and false advertising
· selling securities unsuitable to the investment needs and objectives of clients
· misrepresentations and false advertising
In August 2001, seven brokers who worked for IDF settled with the commission on this matter. At that time, as part of their settlements, they made payments and agreed to be subject to strict supervision if they seek registration to sell securities in B.C. again. They were also barred for varying periods from relying on certain exemptions to sell securities and from engaging in investor relations activities.
The B.C. Securities Commission is the independent provincial government agency responsible for regulating trading in securities and exchange contracts within the province. Copies of the settlement and related notices can be viewed in the documents database of the commission’s website www.bcsc.bc.ca or by contacting Media Relations Officer Andrew Poon at (604) 899-6880.
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