BCSC

Decisions

MINDORO CORPORATION, et. al. [Sec. 171]

BCSECCOM #: 2001 BCSECCOM 729	Document Type: Sec. 171
Published Date: 2001-07-11	Effective Date: 2001-07-04
Details:

2001 BCSECCOM 729

COR#01/042

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

AND

IN THE MATTER OF MINDORO CORPORATION AND RONALD VICTOR MARKHAM

Variation Order Under Section 171

[para 1]
1. On August 31, 1994, under section 144(2) of the Securities Act, S.B.C. 1985, c. 83 (the “Former Act”), now section 161(2) of the Securities Act, R.S.B.C. 1996, c. 418 (the “Act”), the Executive Director issued temporary orders cease trading the securities of Mindoro Corporation (Oregon), Mindoro Corporation (Nevada) and the securities of any other issuer controlled by Mindoro Corporation (Oregon), Mindoro Corporation (Nevada) or Ronald Victor Markham (the “Temporary Order”).

[para 2]
2. On August 31, and September 15, 1994, the British Columbia Securities Commission issued orders under section 135(1) of the Former Act, (section 151 of the Act) directing Mindoro Corporation (Oregon), Mindoro Corporation (Nevada) and Markham to hold any funds, securities or other property of Mindoro Corporation (Oregon) and Mindoro Corporation (Nevada) under their control and to refrain from withdrawing any funds, securities or other property of Mindoro Corporation (Oregon), Mindoro Corporation (Nevada), Markham or of any other entity from any person having them on deposit under control or for safekeeping (the “Mindoro Freeze Orders”).

[para 3]
3. On August 31, 1994, the Commission ordered under section 135(1) of the Former Act, that the Bank of Montreal, 595 Burrard Street, Vancouver, British Columbia, hold any funds, securities or other property of Mindoro Corporation (Oregon) which the Bank had on deposit under control or for safekeeping (the “Bank of Montreal Freeze Order”).

[para 4]
4. Following a hearing under sections 144 and 144.1 of the Former Act (now sections 161 and 162 of the Act) into the conduct and affairs of Mindoro Corporation (Oregon), Mindoro Corporation (Nevada), (collectively “Mindoro”), Markham, Dr. John Berry and Ronald James Conn, the Commission issued a decision on February 7, 1997, in which it found, among other things, that Markham masterminded an illegal distribution of Mindoro shares, perpetrated a fraud on Mindoro and the residents of British Columbia who invested in Mindoro, and fraudulently appropriated funds from Mindoro’s treasury (the “Decision”).

[para 5]
5. Based upon findings set out in the Decision, the Commission ordered, effective February 7, 1997, that:

5.1 under section 144(1)(b) of the Former Act (now section 161(1)(b) of the Act), the temporary orders made on August 31, 1994, cease trading the securities of Mindoro and of any other issuer controlled by Mindoro or Markham, be made permanent;

5.2 under section 144(l)(c) of the Former Act (now section 161(1)(c) of the Act), the exemptions described in sections 30 to 32.1, 55, 58, 80 and 81 of the Former Act (sections 44 to 47, 74, 75, 98 or 99 of the Act) do not apply to Markham for the rest of his natural life;

5.3 under section 144(l)(d) of the Former Act (now section 161(1)(d) of the Act), Markham be prohibited from becoming or acting as a director or officer of any issuer and be prohibited from engaging in investor relations activities for the rest of his natural life; and

5.4 under section 144.1 of the Former Act (now section 162 of the Act), Markham and Mindoro each pay an administrative penalty of $100,000.

[para 6]
6. On October 28, 1998, the Commission ordered under section 174 of the Act, that the costs of or related to the hearing, being $29,767.50, be apportioned and payable forthwith by Conn as to $1,555 and by Mindoro, Markham and Berry, jointly and severally, as to $28,212.50.

[para 7]
7. On February 11, 1998, the Commission gave notice of a hearing for February 17, 1998, at which it would consider an application made by Alexander Cox to revoke the Commission order freezing funds in the accounts of Mindoro Corporation (Oregon) at the Bank of Montreal.

[para 8]
8. On January 27, 1999, the Commission ordered, by consent, under section 171 of the Act that the Mindoro Freeze Orders, freezing funds in the accounts of Mindoro Corporation (Oregon) at the Bank of Montreal, 595 Burrard Street, Vancouver, British Columbia, be revoked on the condition that the funds be paid into the Supreme Court of British Columbia by way of interpleader.

[para 9]
9. On November 2, 2000, Markham executed a Stipulation Allowing Application of Monies to Partial Satisfaction of Judgment in a lawsuit in the Second Judicial District Court of the State of Nevada, County of Washoe. The Commission made an assignment to the Minister of Finance, Collection and Loan Management Branch, of the indebtedness of Markham to the Commission as a result of the Decision. The lawsuit was commenced by the Minister of Finance in Nevada, where Markham is currently resident, as a result of the assignment of the indebtedness. A Judgment was entered in the lawsuit in favour of the Minister of Finance.

[para 10]
10. The Commission, considering that to do so would not be prejudicial to the public interest, orders, by consent, under section 171 of the Act that the freeze order issued on August 31 and September 15, 1994, freezing funds in the accounts of Markham at the Bank of Montreal, 595 Burrard Street, Vancouver, British Columbia, be revoked on the condition that the funds be paid to the Ministry of Finance and Corporate Relations, Collection and Loan Management Branch.

[para 11]
DATED at Vancouver, British Columbia, on July 4, 2001.

Joyce C. Maykut, Q.C.
Vice Chair