BCSC

Settlements

DON GARTH CHOQUER [Sec. 144 & Agreed Stmt]

BCSECCOM #:	Document Type: Sec. 144 & Agreed Stmt
Published Date: 1997-03-21	Effective Date: 1997-03-13
Details:

IN THE MATTER OF THE SECURITIES ACT
S.B.C. 1985, c. 83

AND

IN THE MATTER OF DON GARTH CHOQUER

Order Under Section 144

WHEREAS an Agreed Statement of Facts and Undertaking has been executed by Don Garth Choquer and the Executive Director, a copy of which is attached hereto as Schedule "A" (the "Agreement");

NOW THEREFORE the Executive Director, considering that it would be in the public interest to do so, orders, BY CONSENT, that:

1. under section 144(1)(a) of the Securities Act, S.B.C. 1985, c. 83, Choquer agrees to comply with section 42 of the Act;

2. under section 144(1)(c) of the Act, that the exemptions described in sections 30 - 32.1, 55, 58, 80 and 81 (other than subsections 32(a), (b) and (i)), do not apply to Choquer for a period ending on the latter of:

(a) the date Choquer satisfies his obligation referred to in paragraph 3 below, including any accrued interest; and

(b) two years from the date of the Order;

except that Choquer may trade shares he beneficially owns at the date of the Order, subject to the following conditions:

(c) that before any trades take place, Choquer must deliver a sworn declaration to the Executive Director listing all of the securities he beneficially owns at the date of the Agreement;

(d) that any such trade must take place within 180 days of the date of the Order through a single registered dealer designated in writing by Choquer; and

(e) that before any such trades take place, Choquer must deliver to the registered dealer:

(i) a copy of the Order;

(ii) an irrevocable direction to pay to the Commission the net proceeds from the trades until such time as Choquer's obligation to the Commission under paragraph 3 below, is satisfied; and

(iii) an irrevocable direction to provide a copy of the confirmation slip evidencing any trades by Choquer to the Executive Director within four days of the trade occurring.

3. under subsection 144(1)(d) of the Act, that Choquer is prohibited from becoming or acting as a director or officer of any reporting issuer or any issuer that provides management, consulting, or administrative services to a reporting issuer for a period ending on the latter of:

(a) the date Choquer satisfies his obligation to pay $50,000 described in paragraph 3 of the Agreement; and

(b) two years from the date of this Order.

DATED at Vancouver, British Columbia, on March 13, 1997.

Paul C. Bourque
Executive Director

“Schedule “A”
IN THE MATTER OF THE SECURITIES ACT
S.B.C. 1985, c. 83

AND

IN THE MATTER OF DON GARTH CHOQUER

Agreed Statement of Facts and Undertaking

The following agreement has been reached between Don Garth Choquer and the Executive Director:

1. As a basis for the orders and undertaking referred to below, Don Garth Choquer acknowledges the following facts to be true:

(a) Don Garth Choquer ("Choquer") was the President and beneficial owner of International Venture Capital Management Ltd. ("IVCM") during the material time being August 1988 to September 1990 (the "Material Time").

(b) IVCM is a private company incorporated in 1986 under the Company Act, R.S.B.C. 1979 c. 59 (the "Company Act").

(c) 306285 B.C. Ltd. ("306") is a private company beneficially owned and controlled by Robert Moore. 306 was incorporated under the Company Act in 1986.

(d) Hovik Medical Corporation ("Hovik"), currently called Globetel Communications Ltd., was incorporated under the Company Act in 1980. Hovik has been a reporting issuer under the Securities Act, S.B.C. 1985, c. 83 as amended (the "Act") since 1980. During the Material Time, its securities were listed and posted for trading on the Vancouver Stock Exchange ("VSE").

(e) Moore, through 306, acquired approximately 5.9 million shares of Hovik in April, 1988 (the "Moore Shares") and became a control person of Hovik.

(f) During the Material Time, IVCM provided management services directly or indirectly to Moore and 306.

(g) During the Material Time, Choquer, through IVCM, made a series of loans to Moore and his private companies. These loans were partially secured by a portion of the Moore Shares which Moore pledged to IVCM (the "Pledged Shares"). Choquer had custody of the Pledged Shares.

(h) During the Material Time, Choquer, through IVCM, deposited a portion of the Pledged Shares in margin accounts at three brokerage firms which were members of the VSE and used them as collateral (the "Margin Shares").

(i) During the Material Time, Choquer, through IVCM, loaned a portion of the Pledged Shares to third parties (the "Borrowers").

(j) Choquer represented to the Borrowers that the Shares were not part of a control block. He did not restrict the Borrowers from further pledging the Pledged Shares as collateral to obtain margin or from selling the Pledged Shares.

(k) The Borrowers deposited the Pledged Shares as collateral to obtain margin at brokerage firms which were members of the VSE.

(l) The Borrowers sold a portion of the Pledged Shares into the market, thus causing a distribution from a control position without a prospectus and without an exemption from the prospectus requirements, contrary to section 42 of the Act.

(m) The arrangement described in paragraph 1(g) - 1(k), above, caused various brokerage firms to violate G.1.08 of the VSE Rules which precludes any security which is part of the holdings of a control person from being accepted for margin purposes.

(n) Choquer caused the brokerage houses referred to in paragraph 1(h) to violate G1.08 of the VSE Rules. In addition, he ought to have known that the Borrowers were pledging and selling the Shares. He was therefore responsible for the breaches described in subparagraphs 1(l) and 1(m) above.

2. Choquer consents to an order by the Executive Director (the "Order") that:

(a) under section 144(1)(a) of the Act, he comply with section 42 of the Act;

(b) under section 144(1)(c) of the Act, that the exemptions described in sections 30 - 32.1, 55, 58, 80 and 81 (other than subsections 32(a), (b) and (i)), do not apply to Choquer for a period ending on the latter of:

(i) the date Choquer satisfies his obligation referred to in paragraph 3 below, including any accrued interest; and

(ii) two years from the date of the Order;

except that Choquer may trade shares he beneficially owns at the date of the Order, subject to the following conditions:

(iii) that before any trades take place, Choquer must deliver a sworn declaration to the Executive Director listing all of the securities he beneficially owns at the date of the Agreement;

(iv) that any such trade must take place within 180 days of the date of the Order through a single registered dealer designated in writing by Choquer;

(v) that before any such trades take place, Choquer must deliver to the registered dealer:

. a copy of the Order;

. an irrevocable direction to pay to the Commission the net proceeds from the trades until such time as Choquer's obligation to the Commission under paragraph 3 below, is satisfied; and

. an irrevocable direction to provide a copy of the confirmation slip evidencing any trades by Choquer to the Executive Director within four days of the trade occurring.

(c) under section 144(1)(d) of the Act, that he is prohibited from becoming or acting as a director or officer of any reporting issuer or any issuer that provides management, consulting or administrative services to a reporting issuer for a period ending on the latter of:

(i) the date Choquer satisfies his obligation referred to in paragraph 3 below, including any accrued interest; and

(ii) two years from the date of the Order.

3. Choquer undertakes to pay the British Columbia Securities Commission (the “Commission”) the sum of $50,000 on or before March 1, 1997 on the terms set out in a promissory note executed by Choquer in favour of the Commission.

4. Choquer waives any right he may have, under the Act or otherwise to a hearing, hearing in review, judicial review or appeal related to, in connection with or incidental to this agreement or the related Order.

DATED at Vancouver, British Columbia, on February 27, 1997.

)
Witness )
)
Herman Van Ommen )
Witness Name (Please print) ) Don Garth Choquer
McCarthy Tetrault )
1300 - 777 Dunsmuir Street )
Vancouver, BC V7Y 1K2 )
Address )

DATED at Vancouver, British Columbia, on March 13, 1997.

Paul C. Bourque
Executive Director