Settlements

DOUGLAS RUSSELL STICKLEY [Agreed Stmt]

BCSECCOM #:
Document Type:
Agreed Stmt
Published Date:
1998-05-01
Effective Date:
1998-04-24
Details:


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

AND

IN THE MATTER OF DOUGLAS RUSSELL STICKLEY


Agreed Statement of Facts and Undertaking


The following agreement has been reached between Douglas Russell Stickley (Stickley) and the Executive Director:


STATEMENT OF AGREED FACTS:

1. Stickley acknowledges the following facts as correct:
      1.1 Between November, 1991 and August, 1995 (the “Relevant Period”) Stickley was registered pursuant to the Securities Act, R.S.B.C. 1996, c. 418 as a mutual fund salesperson;

      1.2 Stickley is currently registered as a mutual fund salesperson;

      1.3 during a portion of the Relevant Period, Stickley was employed by Vantage Securities Limited, a registered securities dealer;

      1.4 Stickley’s advice to five individuals, who were his clients during the Relevant Period, (the “Clients”) forms the basis for this agreement;

      1.5 during the Relevant Period each of the Clients, on Stickley’s advice, borrowed money in order to purchase money market mutual funds and equity mutual funds;

      1.6 at the time of purchase of the money market mutual funds, the rate of return thereupon was below that of the borrowing rate of each client;

      1.7 the Clients were led to believe by Stickley that their investment portfolio would generate a positive monthly net cash flow each month, which they did not. Stickley represents that he intended to say that the investment made economic sense in the long term, but the Clients understood him to say that the program would be essentially self-financing in the short term. Because of the miscommunication with Stickley, the Clients acquired investment portfolios which they otherwise would have considered to be too risky or unsuitable for them, contrary to s.48 of the Rules;

      1.8 Stickley represents that he sincerely believed in the validity of his investment program and that he was not motivated by any dishonest or deceptive intent;

      1.9 in all cases, the client’s money was invested, as directed by the client.

SETTLEMENT TERMS:

2. Stickley agrees to pay the British Columbia Securities Commission $5,000 over one year, commencing after the expiry of Stickley’s period of penalty.

3. Stickley agrees not to sell mutual funds for a period of four (4) months from the date of this Agreement, or until such time as he completes the Canadian Securities Course, whichever is later. This restriction constitutes a condition upon his registration and not a suspension or cancellation of his registration.

4. Any further registration or re-registration of Stickley will not include consideration of the subject matter covered by this settlement except to the extent that any terms remain unperformed by Stickley.

5. Stickley agrees to be placed under close supervision by his employer for a period of two (2) years from the date of this Agreement.

6. This Agreement shall take effect on May 1, 1998.

7. Stickley 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.




“Edward Kes-Dixon”___________)
Witness Signature)
)
Edward D. Kes-Dixon__________)
Witness Name)Douglas Russell Stickley
)
3844 Grace Cr., Prince George_)
Address)
)
Businessman________________)
Occupation)
DATED at Vancouver, British Columbia, on April 24, 1998.







Michael J. Watson
A/Executive Director
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