Settlements

DOUGLAS JAMES GARTLAND [Agreed Stmt.]

BCSECCOM #:
Document Type:
Agreed Stmt.
Published Date:
2000-01-14
Effective Date:
2000-01-07
Details:


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

AND

IN THE MATTER OF DOUGLAS JAMES GARTLAND

Agreed Statement of Facts and Undertaking

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

1. As the basis for the undertakings referred to in paragraph 2 of this agreement, Gartland acknowledges the following facts as correct:
      1.1. Gartland is currently registered as a branch manager and investment advisor pursuant to section 34 of the Securities Act, R.S.B.C. 1996, c. 418 (the “Act”) with Dundee Securities Corporation;

      1.2. Gartland was previously registered as a registered representative at Fortune Financial Corporation (“Fortune”) from April 14, 1994 to August 27, 1999, and as a branch manager from October 29, 1998 to August 27, 1999;

      1.3. In April 1998, Gartland sold 117,964 units of Infinity Income Trust Units (“Infinity”) to 17 residents of British Columbia (the “Purchasers”) for total proceeds of $1,179,640;

      1.4. For six of the Purchasers to whom Gartland sold Infinity, there was inaccurate, inadequate or no “know your client” information and documentation on file as required by section 39 of the Securities Rules, B.C. Reg. 194/97 (the “Rules”);

      1.5. Some of the Purchasers had limited or poor investment knowledge and most of the Purchasers relied completely on Gartland’s advice to purchase Infinity;

      1.6. There was a shareholder relationship between Fortune, Fortune Financial Management Inc., and Fortune Investment Corp. (the “Fortune Group”), and Infinity, Infinity Funds Management Inc. Infinity Investment Counsel Ltd. and Infinity Mutual Funds (the “Infinity Group”);

      1.7. Specifically, David Singh, the President of Fortune, was a controlling shareholder of the Fortune Group and a significant shareholder of the Infinity Group;

      1.8. Also, certain employees and business associates of the Fortune Group, including Gartland, had an ownership interest in the Infinity Group;

      1.9. Due to their ownership interests in the Fortune Group and the Infinity Group, Singh, Gartland and certain employees of Fortune, indirectly benefited from the sales of Infinity and, therefore, a potential conflict of interest existed in regards to the sale of Infinity;

      1.10. Gartland failed to deliver a conflict of interest rules statement (Form 69) regarding Infinity to all Purchasers at the time they became clients, as required by section 77(2) of the Rules;

      1.11. Gartland failed to deliver to all Purchasers, prior to their purchase of Infinity, a conflict of interest rules statement (Form 69) regarding Infinity, or he failed to inform the Purchasers orally, or by some other means, of substantially all the information as required by section 79(1) of the Rules; and

      1.12. Gartland failed to provide to all Purchasers prior to giving advice, a statement, either in writing or orally, about the relationship between Fortune and Infinity, contrary to section 81(1) of the Rules.

2. Gartland undertakes and agrees to:
      2.1. comply fully with the Act, Securities Rules, and all other applicable securities legislation;

      2.2. write and successfully complete the Partners, Directors and Senior Officers Qualifying Examination, as offered by The Canadian Securities Institute, by December 31, 2000; and

      2.3. pay the sum of $25,000 to the British Columbia Securities Commission, $5,000 of which represents the costs of the investigation, and the remainder to the Investor Education Fund.

3. Gartalnd 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.

DATED at Vancouver, British Columbia, on January , 2000.


      “Bernard Hensel” )
      Witness )
      )
      Bernard Hensel ) per:“Douglas James Gartland”
      Witness Name (Please print) ) Douglas James Gartland )
      101- 1462 West 11th Vancouver, BC )
      Address )
      )
      Investment Advisor )
      Occupation )


DATED at Vancouver, British Columbia, on January 7, 2000.



Steve Wilson
Executive Director
©2024 British Columbia Securities Commission