News Release

Vancouver – The B.C. Securities Commission has found that a Surrey man carried on business as an investment adviser without being registered as required under securities laws and lost over $550,000 entrusted to him.

About 10 British Columbia residents gave Eric Wayne Nelson, 34, of Surrey, over $550,000 to invest for them. Nelson used some of the money for his own purposes, but lost the vast majority of it trading options on the NASDAQ 100 index and the S&P 100 index.

In a commission hearing in January 2004, it was publicly revealed that Nelson received approximately $400,000 from one individual and approximately $100,000 from another. He told each of these people that he was an experienced trader who could make them a million dollars. Instead, he lost all of their money.

In making its ruling, the commission panel said that there was “overwhelming evidence” that Nelson was in the business of advising people about investing in exchange contracts and should have been registered as an adviser as required under securities laws.

“Indeed, Eric Nelson admitted that he should have been registered to do the things he did,” added the panel.

The commission will hear further submissions before issuing sanctions.

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.