Notices of Hearing & Temporary Orders

TAC INTERNATIONAL LTD., et. al. [Amended Sec. 161]

BCSECCOM #:
Document Type:
Amended Sec. 161
Published Date:
1998-02-13
Effective Date:
1998-02-11
Details:


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

AND

IN THE MATTER OF TAC INTERNATIONAL LTD., MICHAEL SHAW,
FREDERICK MAURICE NESBITT, DAVID JOHN VAUGHAN,
STEPHEN PETER HUGHES, GARETT TANNER, DEANNA CHRISTIANSEN,
THOMAS LOEWEN, TIMOTHY JAMES BARRY, ROBERTA JANE KRIESE,
AND DENIS MOUILLERAT

(COLLECTIVELY THE “RESPONDENTS”)


Amended Notice of Hearing Under Section 161

1. WHEREAS it appears to the Executive Director, on the advice of the Staff of the British Columbia Securities Commission (the “Commission”), that:
      1.1 TAC International Ltd. (“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 pursuant to section 34 of the Securities Act, R.S.B.C. 1996, c. 418 (the “Act”);

      1.4TACL has not filed a preliminary prospectus or prospectus in British Columbia pursuant to section 61 of the Act, and has invited members of the public within British Columbia to invest in securities through TACL;

      1.5TACL issued securities, in the form of participations in a bank instrument trading program, also called a “prime bank instruments scheme”, in British Columbia;

      1.6TACL created a network of Vice Presidents, District Vice Presidents and Consultants who acted as sales representatives for TACL’s securities within British Columbia;

      1.7 TACL issued securities within British Columbia without having issued a prospectus to do so, and without qualifying for any of the exemptions which are available under the Act to exempt an issuer of securities from filing a prospectus with the Commission, contrary to section 61 of the Act;

      1.8the individual respondents (the “Individual Respondents”) are: Michael Shaw, Frederick Maurice Nesbitt, David John Vaughan, Stephen Peter Hughes, Garett Tanner, Deanna Christiansen, Thomas Loewen, Timothy James Barry and Roberta Jane Kriese, all residents of British Columbia, and Denis Mouillerat, resident of Alberta;

      1.9none of the Individual Respondents is registered pursuant to section 34 of the Act;

      1.10Between August 1996 and August 1997, all of the Individual Respondents acted as TACL Vice Presidents, District Vice Presidents or Consultants. Some of the Individual Respondents acted in more than one capacity. Specifically, the titles given the Individual Respondents were as follows:
        • Denis Mouillerat: International Vice President (December 1996 to April 1997)
        • Michael Shaw: British Columbia Vice President (August to November 1996)
        • Frederick Maurice Nesbitt: British Columbia Vice President (February to May, 1997), later Canadian and International Vice President
        • David John Vaughan: British Columbia Vice President (May 1997 to presentdate)
        • Stephen Peter Hughes: Interior District Vice President (July 1996 to October1996)
        • Garett Tanner: Interior District Vice President (February 1997 to present date)
        • Deanna Christiansen: Fraser Valley District Vice President
        • Thomas Loewen: International Business Consultant
        • Timothy James Barry: International Business Consultant
        • Roberta Jane Kriese: International Business Consultant
      1.11all of the Individual Respondents offered and sold the TACL securities in British Columbia, in breach of sections 34 and 61 of the Act;

      1.12all of the Individual Respondents have committed offences as set out in section 155(1)(d) of the Act; and

      1.13the structure of TACL is a scheme whereby investors are induced by the promise of unusually large returns to invest their money in an investment which is a fabrication and will provide little or no return to the investor, in breach of s. 57 of the Act;.

2. AND WHEREAS the Executive Director, considering it would be in the public interest to do so, ordered on August 5, 1997 that trading in any securities by or of TACL cease, pursuant to section 161(2) of the Act (the “Temporary Order”).

3. AND WHEREAS a hearing was held on August 14, 1997 at the 7th Floor Hearing Room, 865 Hornby Street, Vancouver, British Columbia where the Commission considered the Temporary Order;

4. AND WHEREAS on August 25, 1997 the Commission ordered that the Temporary Order be extended until such time as a hearing is held and a decision rendered.

5. TAKE NOTICE that a set date hearing will be held on Thursday, February 12, 1998 at 10:00 a.m. at the 7th Floor Hearing Room, 865 Hornby Street, Vancouver, British Columbia, to fix a date for the full hearing (the “Hearing”).

6. AND TAKE NOTICE that Staff of the Commission will be asking the Commission to make the following orders at the full Hearing of this matter:
      6.1 that the Individual Respondents resign any position that they hold as a director or officer of any issuer, pursuant to section 161(1)(d) of the Act;
      6.2 that the Individual Respondents be prohibited from becoming or acting as a director or officer of any issuer, pursuant to section 161(1)(d) of the Act;
      6.3 that the Individual Respondents be prohibited from engaging in investor relation activities, pursuant to section 161(1)(d) of the Act;
      6.4 that the Respondents pay an administrative penalty, pursuant to section 162 of the Act;

      6.5 that trading in the securities of TACL cease, pursuant to section 161 (1)(b) of the Act;

      6.6 that any or all of the exemptions described in any of sections 44 to 47, 74, 75, 98 or 99 do not apply to the Respondents; and
      6.7 costs and such further and other relief as the Commission considers appropriate and in the public interest in the circumstances;

7. AND TAKE NOTICE that the Respondents may be represented by counsel at the Hearing and may make representations and lead evidence.

8. AND TAKE NOTICE that determinations may be made in this matter if the Respondents or their counsel do not appear at the Hearing.


DATED at Vancouver, British Columbia, on February 11, 1998





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