BCSC

Settlements

BRUCE JAMES WINCH [Sec. 161 & Agreed Stmt]

BCSECCOM #:	Document Type: Sec. 161 & Agreed Stmt
Published Date: 1997-05-16	Effective Date: 1997-05-05
Details:

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

AND

IN THE MATTER OF BRUCE JAMES WINCH

Order Under Section 161

WHEREAS an Agreed Statement of Facts and Undertaking was executed by Bruce James Winch (“Winch”) and the Executive Director, a copy of which is attached hereto as Schedule "A";

NOW THEREFORE the Executive Director, considering that it would be in the public interest to do so, orders (the “Order”), BY CONSENT, that:

1. under section 161(1)(d) of the Securities Act, R.S.B.C. 1996, c. 418 (the “Act”), Winch be prohibited from becoming or acting as a director or officer of any reporting issuer for a period of four years from the date of the Order;

2. under section 161(1)(d) of the Act, Winch be prohibited from engaging in investor relations activities for a period of four years from the date of the Order; and

3. under section 161(1)(f) of the Act that Winch’s registration be cancelled.

DATED at Vancouver, British Columbia, on May 5, 1997.

Paul C. Bourque
Executive Director

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

AND

IN THE MATTER OF BRUCE JAMES WINCH

Agreed Statement of Facts and Undertaking

The following agreement has been reached between Bruce James Winch, formerly known as Bruce James McConachy (“Winch”) and the Executive Director:

1. As the basis for the orders in paragraph 3 and undertakings in paragraph 4 and 5 of this agreement, Winch acknowledges the following facts as correct:

(a) at all material times Winch was registered as a securities salesman under the Securities Act, R.S.B.C. 1996, c. 418 (the “Act”) in the employment of Yorkton Securities Inc. (“Yorkton”);

(b) on November 30, 1994, the Executive Director issued a Notice of Hearing under section 161 of the Act and Temporary Orders requiring that:

(i) Alexander DiCimbriani cease contravening sections 34 and 50 of the Act; and

(ii) the exemptions described in sections 44 to 47, 74, 75, 98 and 99 of the Act do not apply to DiCimbriani;

(c) during the period from December 1, 1994 to May 26, 1995, Winch accepted approximately 172 orders from DiCimbriani for the purchase and sale of securities with an aggregate value of $497,587 in five accounts in the names of Edward Michael Wilby, John Grywinski and Alan Twaites (the “Accounts”) which resulted in net commissions payable to Winch in the amount of $6,008.71;

(d) Winch participated in an arrangement (the “Arrangement”) whereby:

(i) the Grywinski and Twaites Accounts were opened, at the request of DiCimbriani, on or about February 1, 1995;

(ii) Grywinski and Twaites provided written trading authorizations giving Robert Calveley, a personal friend of Winch, limited authority to buy and sell securities in their Accounts; and

(iii) the purpose of the trading authorizations granted to Calveley was to make it appear to Yorkton and to the regulators as though Calveley was providing the orders for the Grywinski and Twaites Accounts when, in fact, Winch would be accepting the orders directly from DiCimbriani;

(e) at the time that Winch accepted the orders for the Accounts from DiCimbriani, Winch was aware that:

(i) the Temporary Orders were in effect and that they prohibited DiCimbriani from trading in securities;

(ii) Grywinski, Twaites and Wilby had not provided written trading authority for DiCimbriani to enter orders in the Accounts; and

(iii) his employer did not have knowledge that DiCimbriani was entering orders in the Accounts;

(f) as a result of Winch’s conduct:

(i) DiCimbriani traded in securities in the accounts, despite the existence of the Temporary Orders;

(ii) orders were executed in the Accounts on the instructions of a person who did not have written trading authority over the Accounts; and

(iii) Winch, by participating in the Arrangement, attempted to conceal DiCimbriani’s trading in the accounts so as allow DiCimbriani to evade the effect of the Temporary Orders; and

(g) Yorkton suspended Winch’s employment as a securities salesman on

May 31, 1995.

2. Winch was previously disciplined by the Vancouver Stock Exchange on
January 20, 1989 and fined $1,000 for a breach of Exchange Rule F.2.25 which prohibited him from serving as a director of a company listed on the Exchange without the prior approval of the Exchange.
3. Winch consents to an order (the “Order”) by the Executive Director that:

(a) under section 161(1)(d) of the Act, Winch be prohibited from becoming or acting as a director or officer of any reporting issuer for a period of four years from the date of the Order;

(b) under section 161(1)(d) of the Act, Winch be prohibited from engaging in investor relations activities for a period of four years from the date of the Order; and

4. Winch undertakes not to re-apply for re-registration under the Act for a period expiring on May 5, 2007.

5. Winch undertakes and consents to pay to the British Columbia Securities Commission the sum of $10,000.

6. Winch waives any right he may have, under the Act or otherwise, to a hearing, hearing and review, judicial review or appeal related to, in connection with, or incidental to this agreement or the related Order.

DATED at Vancouver, British Columbia, on May 5, 1997.

Linda Newell )
Witness Name )
)
British Columbia Securities Commission ) ________________________
Address ) Bruce James Winch
Senior Investigator )
Occupation

DATED at Vancouver, British Columbia, on May 5, 1997.

Paul C. Bourque
Executive Director