Notices of Hearing & Temporary Orders

DONALD P. CURRIE [Sec. 161]

BCSECCOM #:
Document Type:
Sec. 161
Published Date:
1998-10-30
Effective Date:
1998-10-27
Details:


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

AND

IN THE MATTER OF DONALD P. CURRIE

Notice of Hearing Under Section 161

1. TAKE NOTICE that a hearing will be held on October 30, 1998 at 10:00 a.m. (the “Hearing”) at the 7th Floor Hearing Room, 865 Hornby Street, Vancouver, British Columbia, to give the Respondent an opportunity to be heard before the British Columbia Securities Commission (the “Commission”) determines whether it is in the public interest:
      1.1. to make an order under section 161(1)(a)(ii) of the Securities Act, R.S.B.C. 1996, c. 418 (the “Act”) that the Respondent comply with the requirement to produce documents contained in a Summons to Attend Before an Investigator Under Section 144 of the Act (the “Summons”) issued on June 23, 1998, namely to produce all records and things in his possession or power relating to the distribution of securities and relating to various trading matters by those persons identified in the Summons since November 30, 1995, in particular R.T.D. Hydro Limited, R.T.D. Energy Limited, Claxton Hydro Limited, Claxton Capital Corp, Cheam Energy Corp., R.T.D. Management Inc., Northwest Pacific Power Corp. and Canrain Energy Corp. (the “Companies”);

      1.2 to make an order under section 161(1)(c) that any or all of the exemptions in sections 44 to 47, 74, 75, 98 or 99 of the Act do not apply to the Respondent until such time as the requirement to produce documents contained in the Summons is complied with in full and subject to further order of the Commission;

      1.3 to make an order under section 161(1)(d) that the Respondent resign from and is prohibited from becoming a director or officer of any issuer and from engaging in investor relations activities until such time as the requirement to produce documents contained in the Summons is complied with in full and subject to further order of the Commission;

      1.4 to make an order under section 174 of the Act that the Respondent pay prescribed fees or charges for the costs of or related to the Hearing;

      1.5 to make any other orders as may be appropriate in the circumstances;
2. AND TAKE NOTICE that the Commission will be asked to consider the following facts and allegations in making its determinations:
      2.1 the Respondent is not registered in any capacity under the Act;

      2.2 on or about June 23, 1998, Staff of the Commission obtained an Investigation Order under section 142 of the Act (the “Investigation Order”) that ordered Staff to investigate, inquire into, inspect and examine any person, company or other entity in respect of any matter relating directly or indirectly to the distribution of securities since November 30, 1995 by the Respondent, amongst others, and further to investigate the use of the proceeds raised under the distributions referred to in the Investigation Order;

      2.3 on June 23, 1998, a Summons was issued requiring the Respondent to provide the following documents:
          2.3.1. a list of security holders and register of directors and officers of each of the eight companies listed in the Investigation Order;

          2.3.2 financial statements for each of the companies for the years 1995, 1996 and 1997;

          2.3.3 minutes of directors and shareholders of each of those companies for the years 1995 through to 1998;

          2.3.4 bank statements and cancelled cheques from 1995 to 1998 for each of the companies;

          2.3.5 copies of any offering memoranda issued by any of the companies since November 30, 1995;

          2.3.6 any agreements between the Respondent and any of the companies during the period 1995 to 1998;

          2.3.7 details of all payments made by any of the companies to the Respondent during the period 1995 to 1998;

          2.3.8 any correspondence involving the Respondent and relating to the distribution of securities by any of the companies;

          2.3.9 disbursement details in respect of the distributions of any securities by any of these companies;
      2.4 on June 26, 1998, the Summons was served on the Respondent;

      2.5 on July 7, 1998, the return date of the Summons, the Respondent attended at the offices of the Commission without any of the required documents and requested an adjournment to comply with the Summons. Compliance with the Summons was postponed to July 21, 1998 on the condition that the Respondent provide Staff with all the required documents at that time. The Respondent advised Staff that he would be able to comply with this requirement;

      2.6 on July 21, 1998, the Respondent attended at the offices of the Commission but did not produce any of the required documents. On that date the Respondent sought a further extension to provide the required documents;

      2.7 on July 24, 1998 Staff of the Commission advised the Respondent he would be granted an extension until July 31, 1998 to deliver the documents referred to in paragraphs 2.3.1, 2.3.2., 2.3.3, 2.3.5, together with a detailed list of any of the records relating to matters referred to in paragraphs 2.3.4, 2.3.6, 2.3.7, 2.3.8 and 2.3.9;

      2.8 on July 31, 1998 the Respondent did not comply with the Summons;

      2.9 on August 4, 1998, Staff of the Commission advised the Respondent by letter that he was granted a further extension until September 4, 1998 to comply with the Summons, failing which contempt proceedings might be instituted;

      2.10 on August 31, 1998, the Respondent requested a further extension to September 11, 1998, which request was granted by Staff;

      2.11 on September 15, 1998, the Respondent provided the documents referred to in paragraphs 2.3.1 and 2.3.5 herein and failed to comply with the remainder of the documentary requirements in the Summons. The Respondent further advised that he would deliver additional documents on September 15 or 16 and the balance of the documents on September 17, 1998;

      2.12 as of the date of this Notice of Hearing, the additional documents have not been received from the Respondent;

      2.13 Staff of the Commission is concerned that Currie may be raising money from the public which Currie may not be spending in a manner consistent with the representations being made to investors and that the investigation of this matter is being hampered by Currie’s refusal to comply with the Demand.

      2.14 It appears to Staff that Currie may be in discussions with a Vancouver Stock Exchange listed company with a view to buying it and that the purpose of the acquisition is to create a vehicle into which to vend in some of the Companies.

      2.15 Staff of the Commission is of the view that there has been a deliberate failure to comply with the requirement for documentary production contained in the Summons issued against the Respondent on June 23, 1998;
3. AND TAKE NOTICE that the Respondent may be represented by counsel at the Hearing and make representations and lead evidence. The Respondent is requested to advise the Commission of their intention to attend the Hearing by contacting the Secretary to the Commission, at 1200 - 865 Hornby Street, Vancouver, BC V6Z 2H4;

4. AND TAKE NOTICE that determinations may be made in this matter if the Respondent or his counsel do not appear at the Hearing.




DATED at Vancouver, British Columbia, on October 27, 1998.




Michael J. Watson
A/Executive Director
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