News Release

Vancouver - Two Kamloops, B.C. men have been ordered out of the B.C. capital market in settlements reached with the British Columbia Securities Commission after the pair admitted to making misrepresentations and illegally distributing securities of a U.S. "Pink Sheets"-traded company.

The settlements were the result of coordinated, parallel investigations with the United States Securities and Exchange Commission which also announced details of its case against the two men today.

Mervin George Fiessel and Robert Michael Doherty are permanently banned from trading securities except in limited circumstances. Fiessel cannot ever be a director or officer of any issuer or engage in any investor relations activities. Doherty, with two exceptions, is permanently prohibited from acting as a director or officer of any issuer or engaging in any investor relations activities.

In the settlements, the pair admitted to their involvement with a scheme in which they illegally took control of Greyfield Capital, Inc. - a company with securities traded through the Pink Sheets, an electronic quotation system in the U.S. for over-the-counter securities - and then illegally distributed shares in the company.

The pair admitted that misrepresentations were made about Greyfield and its shares on online investor forums, press releases, and the company's website. Some of the false or misleading information included Greyfield's involvement with Kamloops Autorama & R.V. Ltd., a used-car dealership in B.C.

Fiessel admitted that he sold millions of unauthorized Greyfield shares into the public market and that Greyfield's public disclosure was materially false or misleading. The two men admitted that they acted with deliberate or reckless disregard of a regulatory requirement in the United States and contrary to the public interest in B.C.

"These settlements represent months of coordination and information-sharing between the SEC and our staff," said BCSC Executive Director Brenda Leong. "Working with our U.S. counterparts strengthens our ability to effectively deal with cross border activity such as this where B.C.-based operators use U.S.-based entities to illegally distribute shares and issue misleading information to investors."

Leong said BCSC and SEC investigators were able to disrupt and stop the scheme quite early in its operations - about three months after the illegal activity started. B.C. investigators took action after U.S. securities regulators contacted BCSC staff about the illegal U.S. activity.

"We are working closely with other regulators and law enforcement agencies to detect misconduct and take action against B.C.-based  individuals and companies that conduct illegal market activity within or outside B.C.," Leong said.

Fiessel must pay the BCSC $144,445 and the two men must pay to the U.S. Securities and Exchange Commission sums representing the profits and compensation they made in selling the Greyfield shares for distribution to those who purchased the securities.

The B.C. Securities Commission is the independent provincial government agency responsible for regulating trading in securities within the province. You may view the settlements on our website www.bcsc.bc.ca by typing in the search box, Mervin George Fiessel and Robert Michael Doherty or 2006 BCSECCOM 631 and 633. If you have questions, contact Andrew Poon, Media Relations, 604-899-6880.