Notices of Hearing & Temporary Orders

MAUREEN LOUISE KELLY, et. al. [Sec. 161]

BCSECCOM #:
Document Type:
Sec. 161
Published Date:
1998-06-19
Effective Date:
1998-06-11
Details:


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

AND

IN THE MATTER OF MAUREEN LOUISE KELLY AND
WILLIAM THOMAS EDWARD KELLY

Notice of Hearing Under Section 161


1. TAKE NOTICE that a hearing will be held (the “Hearing”) to give Maureen Louise Kelly and William Thomas Edward Kelly (collectively the “Respondents”) an opportunity to be heard before the British Columbia Securities Commission (the “Commission”) to consider whether it is in the public interest:
      1.1 to make orders under section 161(1)(c) of the Securities Act, R.S.B.C. 1996, c.418 (the “Act”) that any or all of the exemptions described in sections 44 to 47, 74, 75, 98 or 99 do not apply to the Respondents;

      1.2 to make orders under section 161(1)(d) of the Act that the Respondents resign any position that they hold as a director or officer of an issuer;

      1.3 to make orders under section 161(1)(d) of the Act that the Respondents be prohibited from becoming or acting as a director or officer of an issuer;

      1.4 to make orders under section 161(1)(d) of the Act that the Respondents are prohibited from engaging in investor relations activities;

      1.5 to make orders under section 162 of the Act that the Respondents pay an administrative penalty;

      1.6 to make orders under section 174 of the Act that the Respondents pay prescribed fees or charges for the costs of or related to the Hearing; and

      1.7 to make any other order as may be appropriate under the circumstances;
2. AND TAKE NOTICE that the Commission will be asked to consider the following facts and allegations in making its determinations:
      2.1 on February 18, 1993, the Superintendent of Brokers, now the Executive Director, issued a cease trade order to Tex-Can Oil & Gas Fund No. 1 Inc. (“Tex-Can No. 1”) and Tex-Can Oil & Gas Fund No. 2 Inc. (“Tex-Can No. 2”) who were non-reporting issuers in British Columbia;

      2.2 the Cease Trade Order was issued as a result of alleged violations of the Securities Act, S.B.C. 1985, c. 83 (the “Prior Act”) arising from the sale of investments by the Respondents by way of private placements in 1991 and 1992;

      2.3 on June 2, 1995, the Respondents, amongst others, were charged in the Provincial Court of British Columbia with various offences alleging breaches of certain sections of the Prior Act and the trial was held January 13-16, 20-23, 27-29 and February 3-6, 1997;

      2.4 on May 23, 1997, the Respondents were convicted under the Prior Act of a number of offences including:
          (a) trading after the cease trade order was issued, contrary to section 138(1)(d) of the Prior Act [now section 155(1)(e)];

          (b) late filings of Form 20 and 20(A), contrary to sections 128 and 132(1) of the Securities Regulation, B.C. Reg. 270/86 [now sections 135 and 139(2) of the Rules];

          (c) authorizing, permitting or acquiescing in misrepresentations made to the Commission by Tex-Can No.1 and Tex-Can No. 2 that the distributions were lawfully made pursuant to the sophisticated purchaser exemption, contrary to section 138(1) (b) of the Prior Act [now section 155(1)(c)];

          (d) trading in securities without registration, contrary to section 20 of the Prior Act [now section 34]; and

          (e) distributing securities without filing a prospectus, contrary to section 42 of the Prior Act [now section 61];

      2.5 on September 24, 1997, Maureen Kelly was sentenced to imprisonment for six months and four months on all of the charges, to be served concurrently; and

      2.6 on September 24, 1997, William Kelly was sentenced to imprisonment for 12 months and six months on all of the charges, to be served concurrently;
3. AND TAKE NOTICE that the Respondents may be represented by counsel at the Hearing and may make representations and lead evidence. The Respondents are requested to advise the Commission of their intention to attend the Hearing by contacting the Secretary to the Commission at 1200 - 865 Hornby Street, Vancouver, British Columbia, V6Z 2H4;

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

5. AND TAKE NOTICE that the Respondents or their counsel are required to attend at the 7th Floor Hearing Room, 865 Hornby Street, Vancouver, British Columbia, on July 10, 1998, at 10:00 a.m., if they wish to be heard before the Commission fixes a date for the Hearing.


    DATED at Vancouver, British Columbia, on June 11, 1998.






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