BCSC

Settlements

RICHARD DOUGLAS HUSOLO [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 RICHARD DOUGLAS HUSOLO

Agreed Statement of Facts and Undertaking

The following agreement has been reached between Richard Douglas Husolo (“Husolo”) and the Executive Director:

1. As a basis for the undertaking referred to below, Husolo acknowledges the following facts as correct:

(a) Husolo was registered as a salesperson with C.E. Securities Limited (“C.E.”) from January 30, 1992 until October 28, 1996;

(b) Husolo was registered as a salesperson with Vantage Securities Inc. (“VSI”) from November 18, 1996 until April 27, 1998;

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

(e) On May 15, 1998 Husolo, 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;

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

(g) 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 Husolo was registered as a salesperson of VSI, also under the Act, which was not true, and when Husolo 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. Husolo undertakes to comply with the provisions of the Act and the Securities Rules from the date of this agreement.

3. Husolo undertakes to send to each of his clients, a letter containing the contents of Appendix “A” attached to this agreement. Amended letter Appendix "B" mailed Oct. 8, 1998 as per discussion with Ross McLennan.

4. Husolo 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_______________________	)	RICHARD DOUGLAS HUSOLO
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. Lewis

Rick 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