Settlements

JOHN LAWRENCE LEWIS [Agreed Stmt]

BCSECCOM #:
Document Type:
Agreed Stmt
Published Date:
1999-02-05
Effective Date:
1998-11-03
Details:


IN THE MATTER OF THE SECURITIES ACT
R.S.B.C. 1996, c. 418

AND

IN THE MATTER OF JOHN LAWRENCE LEWIS

Agreed Statement of Facts and Undertaking


The following agreement has been reached between John Lawrence Lewis (“Lewis”) and the Executive Director:

1. As a basis for the undertaking referred to below, Lewis acknowledges the following facts as correct:
      (a) Lewis was registered as a salesperson with Multifund Investments Ltd. from July 3, 1985 until September 3, 1985;

      (b) Lewis was registered as a salesperson with Regal Capital Planners Ltd. from November 22, 1985 until January 5, 1988;

      (c) Lewis was registered as a salesperson with Tillcan Financial Corporation from January 8, 1988 until May 24, 1988;

      (d) Lewis was registered as a salesperson with C.E. Securities Limited (“C.E.”) from November 2, 1988 until December 21, 1992;

      (e) Lewis was registered as a salesperson with Vantage Securities Inc. (“VSI”) from December 23, 1992 until May 6, 1998;

      (f) Lewis is currently registered as a salesperson with C.E. and was so registered as of May 8, 1998;

      (g) on May 11, 1998, VSI’s registration as a securities dealer under the Act was cancelled;

      (h) On May 15, 1998 Lewis, while employed by C.E., sent a letter under the name of VSI and on the letterhead of VSI (the “Letter”) to former clients of VSI;

      (i) Lewis used the letterhead of VSI when he was not employed by VSI, in breach of section 53 of the Act;

      (j) the Letter which was on VSI letterhead, represented to the public, in breach of sections 50(1)(d) and 54 of the Act, that VSI was registered under the Act and that Lewis was registered as a salesperson of VSI, also under the Act, which was not true, and when Lewis knew or ought to have known that VSI was no longer registered under the Act and when he also knew he was no longer registered to sell securities as an employee of VSI;

2. Lewis undertakes to send to each of his clients, a letter containing the contents of Appendix “A” attached to this agreement. Attached amended letter, Appendix "B" marked October 8th, 1998 as per discussion with Ross McLennan.

3. Lewis waives any right he may have, under the Act or otherwise, to a hearing, hearing and review, judicial review or appeal relating to, in connection with or incidental to this agreement.

DATED at Vancouver, British Columbia, on October 26, 1998.




__________________________)
Witness Signature)
G. Lang____________________)JOHN LAWRENCE LEWIS
Witness Name (Please print))
#203, 5780 - 176A St.________)________________________
Address)
Receptionist ________________)
Occupation)


DATED at Vancouver, British Columbia, on November 3, 1998.




Michael J. Watson
A/Executive Director



Appendix “A”

Dear __________ :



As a former client of Vantage Securities Inc. (“VSI”) you may have received a letter from us dated May 15, 1998 on the letterhead of VSI.

The British Columbia Securities Commission (the “Commission”) has advised us that a number of inaccuracies are contained in that letter. In particular, it was a breach of the Securities Act for us to write a letter to you on VSI’s letterhead at a time when we knew that VSI’s registration as a securities dealer had been cancelled by the Commission. Furthermore, at the time we wrote the letter, we were not in the employ of VSI and the letter could have been interpreted to suggest that VSI was still registered and we were still in the employ of VSI. We should have identified ourselves as employees of C.E. Securities Limited, for whom we were registered at the time.

Additionally, we inaccurately stated that your investments were not held in nominee accounts under VSI’s name. As a result of investigations conducted by KPMG and the Commission, in fact some of the investments were held in nominee accounts under VSI’s name. This has caused some concerns regarding the interpretations contained in the new amendments to the provisions of the Bankruptcy and Insolvency Act within the VSI bankruptcy.

However, as you are aware, the former customers of VSI recently approved a proposal, yet to be approved by the Court, that will see the former customers have their portfolios returned to them without conditions within the near future. If you have any questions or comments, please feel free to contact either of us, and once again we apologize for the inaccuracies contained in the letter of May 15, 1998.



C.E. SECURITIESLIMITED
Appendix "B"
FINANCIAL PLANNING - SECURITIES DEALER

October 81998
    Client Sample


    Dear Client Sample:

    As a former client of Vantage Securities Inc. ("VSI") you may have received a letter from us dated May 15, 1998 on the letterhead of VSI.

    The British Columbia Securities Commission (the "Commission") has advised us that a number of inaccuracies are contained in that letter. In particular, it was a breach of the Securities Act for us to write a letter to you on VSI's letterhead at a time when we knew that VSI's registration as a securities dealer had been canceled by the Commission. Furthermore, at the time we wrote the letter, we were not in the employ of VS! and the letter could have been interpreted to suggest that VSI was still registered and we were still in the employ of VSI. We should have used C.E. Securities Limited letterhead where we were registered at the time.

    Additionally, we inaccurately stated that your investments were not held in nominee accounts under VSI's name. As a result of investigations conducted by KPMG and the Commission, in fact some of the investments were held in nominee accounts under VSI's name. This has caused some concerns regarding the interpretations contained in the new amendments to the provisions of the Bankruptcy and Insolvency Act within the VSI bankruptcy.

    However, as some of you are aware, the former customers of VSI recently approved a proposal, which has been approved by the Court, that will see the former customers have their portfolios returned to them without conditions within the near future. If you have any questions or comments, please feel free to contact either of us, and once again we apologize for the inaccuracies contained in the letter of May 15, 1998

    Sincerely,





    John L. LewisRick Rusolo, CFP, RFP

    JLL:RH/gl
    Suite 203, 5780 - l76A Street, Surrey BC V3S 4H3
    Tel: 604.574.4767 Toll Free: 1.888.(LO-TAXES) 568.2937 Fax: 604.574.5927




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