Settlements
KEVIN SEAN KILLOUGH [Sec. 161 & Settlement Agrmnt]
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BCSECCOM #:
2001 BCSECCOM 1058, 2001 BCSECCOM 1059
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Document Type:
Sec. 161 & Settlement Agrmnt
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Published Date:
2001-11-08
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Effective Date:
2001-11-06
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Details:
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2001 BCSECCOM 1058
IN THE MATTER OF THE SECURITIES ACT
R.S.B.C. 1996, c. 418
AND
IN THE MATTER OF KEVIN SEAN KILLOUGH
Order Under Section 161
[para 1]
1. WHEREAS a Settlement Agreement was executed by Kevin Sean Killough (“Killough”) and the Executive Director, a copy of which is attached hereto as Schedule "A".
[para 2]
2. NOW THEREFORE the Executive Director, considering that it would be in the public interest to do so, orders, BY CONSENT, that:
2.1 under section 161(1)(b) of the Act, Killough cease trading in any security other than under section 45(2)(7) of the Act to allow him to trade through a registered dealer for his own account;
2.2 under section 161(1)(c) of the Act, all the exemptions described in sections 44 through 47, 74, 75, 98 and 99 of the Act do not apply to Killough, whether acting directly, or indirectly through another person, company or trust acting on his behalf, except for section 45(2)(7) of the Act to allow him to trade through a registered dealer for his own account;
2.3 under section 161(1)(d) of the Act, Killough resign any position he holds as a director or officer of any issuer and be prohibited from becoming or acting as a director or officer of any issuer, except for one corporation which he owns 100% of these shares; and
2.4 under section 161(1)(d)(iii) of the Act, Killough is prohibited from engaging in investor relations activities;
for 5 years from the date of this order.
DATED at Vancouver, British Columbia, on November 6, 2001.
Executive Director
2001 BCSECCOM 1059
IN THE MATTER OF THE SECURITIES ACT
R.S.B.C. 1996, c. 418
AND
IN THE MATTER OF KEVIN SEAN KILLOUGH
Settlement Agreement
[para 1]
1. Kevin Sean Killough ("Killough") and the Executive Director have reached the following settlement of issues.
Agreed Statement of Facts
[para 2]
2. As the basis for the order and undertaking referred to below, Killough acknowledges the following facts as correct:
2.1 Killough is resident in Kelowna, B.C. and was registered under the Securities Act, R.S.B.C. 1996, c. 418 (the "Act") from July 11, 1995 to February 1, 2001to sell mutual funds through PFSL Investments Canada Ltd. in British Columbia.
2.2 On three separate occasions, between November 2000 and January 2001, Killough changed the address on his client’s account records to his own. He subsequently redeemed securities held in that client’s accounts and sent the proceeds totalling $7,521.00 to his residence.
2.3 By doing so Killough failed to deal fairly, honestly, and in good faith with his clients, contrary to section 14(1) of the Securities Rules, B.C. Reg. 194/97.
2.4 By redeeming his clients’ funds and then converting the proceeds to his own use, Killough engaged in a series of transactions that he knew perpetrated a fraud on his clients in British Columbia contrary to section 57 of the Act.
Undertaking
[para 3]
3. Killough undertakes the following:
3.1 to refrain from applying for registration under the Act for a period of ten years from the date this agreement is signed.
Order
[para 4]
4. Killough consents to the following orders made by the Executive Director (the "Order"):
4.1 under section 161(1)(b) of the Act, Killough cease trading in any security other than under section 45(2)(7) of the Act to allow him to trade through a registered dealer for his own account;
4.2 under section 161(1)(c) of the Act, all the exemptions described in sections 44 through 47, 74, 75, 98 and 99 of the Act do not apply to Killough, whether acting directly, or indirectly through another person, company or trust acting on his behalf, except for section 45(2)(7) of the Act to allow him to trade through a registered dealer for his own account;
4.3 under section 161(1)(d) of the Act, Killough resign any position he holds as a director or officer of any issuer and be prohibited from becoming or acting as a director or officer of any issuer, except for one corporation which he owns 100% of these shares; and
4.4 under section 161(1)(d)(iii) of the Act, Killough is prohibited from engaging in investor relations activities;
for 5 years.
Waiver
[para 5]
5. Killough waives any right hemay 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 and the Order.
DATED at Kelowna, British Columbia, on October 29, 2001.
________________________________
Kevin Sean Killough
Witness Signature
_____________________________
Witness Name (Please Print)
_____________________
Address
____________________________
Occupation
DATED at Vancouver, British Columbia, on November 6, 2001.
Steve Wilson
Executive Director