Settlements

TIMOTHY JAMES BARRY [Sec. 161 & Agreed Stmt]

BCSECCOM #:
Document Type:
Sec. 161 & Agreed Stmt
Published Date:
1999-03-05
Effective Date:
1999-02-16
Details:


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

AND

IN THE MATTER OF TIMOTHY JAMES BARRY


Order Under Section 161

WHEREAS an Agreed Statement of Facts and Undertaking was executed by Timothy James Barry (“Barry”) and the Executive Director, a copy of which is attached hereto as Schedule “A” (the “Agreement”):

NOW THEREFORE the Executive Director, considering that it would be in the public interest to do so, orders, by consent, that:

1. under section 161(1)(c) of the Securities Act, R.S.B.C. 1996, c. 418 (the “Act”), all of the exemptions described in sections 44-47, 74, 75, 98 and 99 of the Act do not apply to Barry for a period ending on the later of:

      1.1 the date Barry satisfies his obligation to pay the sum of $5,000 as described in paragraph 4 of the Agreement, including any accrued interest; and

      1.2 one year from the date of this order;
        save that Barry may rely on the exemption set out at section 45(2)(7) of the Act.


    DATED at Vancouver, British Columbia, on February 16, 1999.




    Michael J. Watson
    Executive Director






    Schedule “A”
    IN THE MATTER OF THE SECURITIES ACT
    R.S.B.C. 1996, c. 418

    AND

    IN THE MATTER OF TIMOTHY JAMES BARRY

    Agreed Statement of Facts and Undertaking

        The following agreement has been reached between Timothy James Barry (“Barry”) and the Executive Director:

    1. As the basis for the orders and undertakings referred to below, Barry acknowledges the following facts as correct:
        TAC Investment Program
        1.1 TAC International Limited (“TACL”) is a company incorporated pursuant to the laws of the Commonwealth of the Bahamas;

        1.2 TACL does not have an office in British Columbia and is not a reporting issuer in British Columbia;

        1.3 TACL is not registered to carry on business in British Columbia;

        1.4 TACL is not registered pursuant to section 34 of the Securities Act, R.S.B.C. 1996, c. 418 (the “Act”);

        1.5 between August 1996 and August 1997, TACL developed a network of investment consultants who acted as sales persons in British Columbia;

        1.6 TACL, through investment consultants, including Barry (as described below), promoted an investment program in British Columbia which involved trading in bank debentures or instruments which required an investor to incorporate an international business corporation (“IBC”);

        1.7 TACL would facilitate an investor incorporating an IBC at a cost of $1,500 (US). TACL would then loan $1,500 (US) to the investor’s IBC which money was then purportedly pooled by TACL with the money of other investors in order to invest in a bank debenture trading program;
        1.8 investors were told:
            1.8.1 the $1,500 (US) loan from TACL was to be repaid in 12 months;

            1.8.2 the loan was interest free and, further, the loan was to be repaid through profits generated through the investment in the bank debentures; and

            1.8.3 TACL advised investors that the loan would not be repayable if the investment in the bank debenture trading program failed;

        1.9 participation in the bank debenture trading program offered by TACL to investors in British Columbia is trading in a security as that term is defined in section 1 of the Act;

        1.10 TACL represented to investors that returns on the investment of $1,500 (US) would be 40% in the first forty-five (45) days after investment and 60% in every forty-five (45) day period thereafter;

        1.11 investment consultants were to earn a commission for recruiting other investors, which was 30% of the initial IBC fee of $1,500 (US) and commission on any profit generated by the investor’s IBC through trading in the bank debenture trading program;

        1.12 TACL developed a network of regional, provincial, national and international vice presidents who were individuals to whom investment consultants reported;

        1.13 during the time of the operation of its investment program in British Columbia, TACL recruited approximately 171 investors in British Columbia and raised at least $256,000 (US) from investors in British Columbia;

        Role of Timothy Barry

        1.14 Barry became involved with TACL in or about September 1996. TACL was introduced to Barry by Stephen Hughes, who was TACL’s vice-president for B.C. at that time;

        1.15 Barry began working as an investment consultant for TACL and he sold IBCs to approximately 20 investors;

        1.16 Barry believes he was entitled to a 30% commission on the sales he made of IBCs to investors. Barry also believes he was entitled to a trailer commission of 10% on the returns to be earned by IBCs of investors he sold to;

        1.17 Barry personally invested $1,500 (US) in an IBC;

        1.18 Barry was involved with TACL until in or about August 1997;

        1.19 Barry has been paid some, but not all, of the commissions to which he believed he was entitled nor has he received a return of the capital he invested or the purported profits generated in his own IBC; and

        1.20 Barry is not now, nor has he ever been, registered to trade in securities under section 34 of the Act; and

        1.21 Barry’s involvement with TACL constituted trading in securities in the Province of British Columbia. These trades were distributions as they were trades in securities not previously issued to the public. As Barry was not registered, and as no prospectus or preliminary prospectus regarding the securities had been filed with the Commission and receipts obtained for them, and as no exemptions were available for the trades, the actions of Barry contravened sections 34 and 61 of the Act.
    2. Barry consents to an order by the Executive Director (the “Order”) that:
        2.1 under section 161(1)(c) of the Act, any or all of the exemptions described in sections 44-47, 74, 75, 98 or 99 of the Act do not apply to Barry for a period ending on the later of:
            2.1.1 the date Barry satisfies his obligation in paragraph 4 below, including any accrued interest; and

            2.1.2 one year from the date of the Order.

        save that Barry is entitled to rely on the exemption set out at section 45(2)(7) of the Act;

    3. Barry undertakes to comply with the Act and the Securities Rules, B.C. Reg. 194/97 and all applicable regulations, policies and guidelines.

    4. Barry undertakes to pay the Commission the sum of $5,000 consisting of $2,000 in investigation costs and $3,000 in administrative penalty on the following payment schedule:
        4.1 $1,700 by March 31, 1999;
        4.2 $1,650 by May 31, 1999; and
        4.3 $1,650 by July 31, 1999;
        and on the terms set out in a Promissory Note executed by Barry in favour of the Commission.

    5. Barry 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 and any related orders.


    DATED at Vancouver, British Columbia, on February 12, 1999.


    Nikki Aulin______________)
    Witness Name (please print))
    )
    “Nikki Aulin”_____________)“Timothy James Barry”
    Witness Signature)
    2675 Nechako Dr_________)
    Kamloops, BC___________)
    Address)
    Student_________________)
    Occupation)

    DATED at Vancouver, British Columbia, on February 12, 1999.





    Michael J. Watson
    Executive Director
    ©2024 British Columbia Securities Commission