News Release

Vancouver – The B.C. Securities Commission has issued the remaining sanctions against two men involved in a Langley-based mutual fund dealer that sold $20-million in “speculative, illiquid and highly risky” securities to almost 200 conservative clients.

Robert Pierre Lamblin and Leonard William Friesen were involved with Canadian Global Investment Corp.: Lamblin was one of the principals in the business and Friesen was a mutual fund salesman who sold some of the high-risk securities. An administrative penalty had been deferred against Lamblin pending additional information and Friesen had asked that the commission reconsider its sanctions against him.

The commission has decided to:
· Not impose an administrative penalty against Lamblin.
· Reduce the amount of Friesen’s administrative penalty to $5,000 from $20,000 and applied an additional restriction of a one-year strict supervision condition if Friesen should seek registration after his two-year securities trading ban.

In a May 2003 decision, the commission issued sanctions against Lamblin. He was banned from trading in the securities markets and from registering under the Securities Act for 15 years. Should he seek registration after the ban, he would be required to be under strict supervision for one year. Lamblin is also prohibited from becoming or acting as an officer or director of any issuer for at least 15 years.

The commission has decided to not impose an administrative penalty against Lamblin because:
· Lamblin has no ability to pay, with no likely prospect to ever pay, the maximum administrative penalty, and
· the 15 year prohibition orders under section 161 of the Act, effectively ban Lamblin, now 58 years old, from working in the securities industry for the rest of his working life.

In its order, the commission panel pointed out that regulatory orders made in the public interest are for investor protection and the efficiency of, and the public confidence in, capital markets generally.

“They are intended to be preventative, not punitive,” said the panel.

The panel concluded that the orders against Lamblin “are sufficient to protect the public interest” and need not impose an administrative penalty against him.

In Friesen’s situation, he was banned by the commission in November 2002 from trading for two years, prohibited from becoming a registrant for two years, and until he meets certain proficiency requirements, and ordered to pay a $20,000 penalty.

At his request, the commission agreed to reconsider these sanctions and has decided to reduce the amount of Friesen’s administrative penalty to $5,000 from $20,000 and applied an additional restriction of a one-year strict supervision condition if Friesen should seek registration after his two-year securities trading ban expires.

“We believe that a reduced administrative penalty, in addition to the restrictions on Friesen re-entering the securities industry for two years, is sufficient to deter Friesen from any market misconduct in the future,” said the panel.

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 decision can be viewed in the documents database of the commission’s website www.bcsc.bc.ca or by contacting Andrew Poon, Media Relations, 604-899-6880.

Backgrounder

Lamblin and the late Danny Francis Bilinski were the key players directing the business of the mutual fund dealer and the Canadian Global Financial group of companies. Canadian Global Financial was the parent company of the Canadian Global “financial conglomerate” though which the mutual fund dealer and several of the related companies carried on business. As the founder of the Canadian Global Financial group of companies, Bilinski was principally responsible for developing and directing the group’s business and affairs.

In the January 2002 decision, a commission panel ruled that the mutual fund dealer, its principals, including Lamblin and Bilinski, and some salespeople violated the “conflict of interest”, “fair dealing”, “know your client” and “suitability of investment” rules in selling speculative, illiquid and highly risky securities to clients. The commission found this conduct particularly abusive because the securities sold were in companies in which Lamblin and Bilinski held an interest and participated in management.

Bilinski and Lamblin sold over 80% of the securities and most of the clients’ money was lost.

Friesen was a mutual fund salesperson who sold some of the high-risk securities.

Canadian Global Investment is insolvent and has not been registered as a mutual fund dealer since February 15, 2001. The commission permanently removed Canadian Global Investment from the securities markets.

In addition, the commission permanently cease-traded the securities of Canadian Global Financial and Private Ventures. Both companies had distributed securities to the public without a prospectus.