News Release

Released: 04/24/01 Contact: Michael Bernard
NR 01-13 (604) 899-6524 or
(BC only) 1-800-373-6393
Vancouver --The British Columbia Securities Commission (BCSC) has refused an application by the person winding up the affairs of Sterling Bank to release about $500,000 US frozen in a Vancouver bank account by a commission order since April 2000.

Sterling, an offshore bank incorporated in the Pacific nation of Nauru, is unable to pay its debts and the provisional liquidator wants the US funds released so he can proceed with winding up the bank.

BCSC staff and the U.S. Securities and Exchange Commission (SEC) say the frozen funds are the proceeds of alleged illegal securities trading by Stephen C. Sayre and related companies. The SEC says Sayre manipulated the share price of eConnect, a U.S. company. The SEC is seeking orders next month from the California courts to have the allegedly ill-gotten gains surrendered.

“If those orders are made,” the B.C. commission said, “they will assist the SEC in preserving assets for the eConnect investors. “We therefore consider it in the public interest that the freeze order stay in place.” The commission also noted that its staff investigation into the matter is not complete.

The BCSC also turned down an application by Andalex, Ltd., a Sterling bank depositor. The commission ruled that it had no basis to release funds belonging to Sterling at the request of Andalex.

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 Media Relations Officer Andy Poon at 899-6880.