News Release

Vancouver - In a hearing before the British Columbia Securities Commission, a securities broker admitted to contravening Investment Dealers Association of Canada bylaws and violating the Securities Act in his dealings with an individual prohibited from trading securities.

Between April 2000 and September 2004, Edward Bernard Johnson, a B.C. securities broker, contravened IDA bylaws when he allowed Stanley Steven Ross to trade in an account of a third party without proper authorization.  Ross instructed Johnson in connection with about 400 of the 450 trades in the account. Johnson executed the trades, even though he did not have the account holder's authority to accept instructions from Ross.

At the time of the trades, Ross was under an order prohibiting him from trading securities.  The Executive Director argued Johnson knew of the Ross order, but the commission panel hearing the case ruled that there was insufficient evidence to prove this allegation.

During interviews in 2004 and 2005, Johnson told commission investigators he was unaware the account holder had allowed Ross to use the account. He also said he did not know Ross had traded in the account. He admitted in the hearing that this was misleading, and a contravention of the Securities Act.

In a separate settlement with the Executive Director, Ross agreed to a further seven-year ban and $50,000 fine. The panel will review submissions from the parties before it makes its decision on sanctions against Johnson.

The B.C. Securities Commission is the independent provincial government agency responsible for regulating trading in securities within the province. You may view the decision on our website www.bcsc.bc.ca by typing in the search box, Edward Bernard Johnson or 2007 BCSECCOM 257. If you have questions, contact Andrew Poon, Media Relations, 604-899-6880.