Settlements
DEL MICHEL ALBERT DELISLE [Sec. 161 & Settlement Agrmt]
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BCSECCOM #:
2001 BCSECCOM 754, 2001 BCSECCOM 755
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Document Type:
Sec. 161 & Settlement Agrmt
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Published Date:
2001-07-17
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Effective Date:
2001-07-17
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Details:
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2001 BCSECCOM 754
IN THE MATTER OF THE SECURITIES ACT
R.S.B.C. 1996, C. 418
AND
DEL MICHEL ALBERT DELISLE
Order Under Section 161
[para 1]
1. A Settlement Agreement has been reached between Del Michel Albert Delisle (“Delisle”) and the Executive Director, attached as Schedule “A”.
[para 2]
2. The Executive Director, considering it to be in the public interest to do so, orders, by consent, that:
2.1 under section 161(1)(c) of the SecuritiesAct, R.S.B.C. 1996, c. 418 (the “Act”) any or all of the exemptions described in sections 44 to 47, 74, 75, 98 or 99 of the Act do not apply to Delisle until 18 months after the date of this Order;
2.1.1 except that Delisle may rely on the exemption in section 45(2)(7) for trading in his own account, through one designated dealer;
2.2 under section 161(1)(d) of the Act, Delisle resign any position that he holds as a director and officer of any issuer and is prohibited from becoming or acting as a director or officer of any issuer, until the later of:
2.2.1 the date he successfully completes a course of study satisfactory to the Executive Director concerning the duties and responsibilities of directors and officers; and
2.2.2 eighteen months after the date of this Order;
2.3 under section 161(1)(d) of the Act, Delisle be prohibited from engaging in investor relations activities until eighteen months after the date of the Order; and
2.4 under section 161(1)(e) of the Act, Delisle be prohibited from disseminating to the public, or authorizing the dissemination to the public personally, or through any corporate entity, any information relating to trading or advising in securities or investor relations activities for a period of eighteen months from the date of the Order.
Dated July 17, 2001.
Steve Wilson
Executive Director
2001 BCSECCOM 755
SCHEDULE “A”
IN THE MATTER OF THE SECURITIES ACT
R.S.B.C. 1996, c. 418
AND
DEL MICHEL ALBERT DELISLE
Settlement Agreement
[para 1]
1. The following settlement of issues has been reached between Del Michel Albert Delisle in his own capacity and doing business as First Equity Capital (“Delisle”) and the Executive Director.
Agreed Statement of Facts
[para 2]
2. As the basis for the undertakings and orders set out below, Delisle acknowledges the following facts as correct:
2.1 Tri-West Investment Club (“Tri-West”), an Internet-based investment club, is believed to be an unincorporated entity, having a corporate mailing address in Belize and telephone contact numbers in the United Kingdom and the United States. Tri-West is the registered owner of TriWestinvest.com, the domain name for Tri-West’s Internet-based website (the “Tri-West Website”). The Tri-West Website has contact addresses in California and Florida. Tri-West is not registered in any capacity under the Securities Act, R.S.B.C. 1996, c.418 (the “Act”).
2.2 The Tri-West Website describes the Tri-West Program as a “Bank Debenture Trading Program” in which the “principal is fully secured by a Bank Endorsed Guarantee” and is “managed and invested to give a guaranteed high return to the investor on a periodic basis”.
2.3 First Equity Capital (“First Equity”) is an unincorporated entity that carries on business in British Columbia. Delisle is a resident of British Columbia and carries on business as First Equity. Delisle is also a member of Tri-West. He was a registered representative under the Act between June 8 and July 22, 1987, and between August 2, 1989 and November 22, 1990. Neither First Equity nor Delisle is currently registered in any capacity under the Act.
2.4 Tri-West, by way of the Tri-West Website, purports to offer a high-yield investment program (the “Tri-West Program”) to residents of BC and elsewhere. Tri-West represents that the Tri-West Program pays a guaranteed return of 10% per month for a term of 1 year on a minimum investment of U.S. $1,000. Tri-West also represents that after the 1-year term, the principal may be reinvested at a new rate of return, or it is returned to the investor.
2.5 Tri-West, by way of the Tri-West Website, also offers a referral program (the “Referral Program”) to investors. The Referral Program pays to the referring member a bonus of 15% of the funds invested by referred investors, plus 15% of all income earned by those referred investors. An additional bonus of U.S. $1,000 is paid to the referring member for each additional accumulated referred investment of U.S. $50,000. The bonus is invested in the referring member’s own Tri-West Program for one year at the then current rate of return.
2.6 On or about July 19, 2000, Delisle, on behalf of First Equity, solicited residents of BC to invest in the Tri-West Program. Delisle represented to potential investors that “to explode your investment and savings portfolio, you must look at [the Tri-West Website].” Delisle also represented to potential investors that due diligence on Tri-West and the Tri-West program had been carried out.
2.7 Four residents of British Columbia invested a total of approximately U.S. $12,000 in the Tri-West Program based on advice received from Delisle and First Equity.
2.8 Delisle did not personally invest any money in the Tri-West Program. However, Delisle did receive approximately U.S. $2000 by means of the Referral Program, which he subsequently withdrew from the Tri-West Program.
2.9 Delisle and First Equity, by means of the conduct described in paragraphs 2.6 through 2.8, traded in the securities of Tri-West without registration and without an applicable exemption from the registration requirements of the Act, contrary to section 34(1)(a) of the Act.
2.10 Delisle and First Equity, by means of the conduct described in paragraphs 2.6 through 2.8, engaged in the business of advising others with respect to investment in the securities of Tri-West without registration and without an applicable exemption from the registration requirements of the Act, contrary to section 34(1)(c) of the Act.
Mitigating Factors
[para 3]
3. The Executive Director has taken into account the following facts as factors mitigating the sanctions which would otherwise have applied in the public interest:
3.1 Delisle and First Equity have ceased disseminating to the public any material relating to the Tri-West Program; and
3.2 Delisle has cooperated with the staff of the British Columbia Securities Commission (the “Commission”) in its investigation relating to this matter.
Undertakings
[para 4]
4. Delisle undertakes:
4.1 to cease using the name of First Equity Capital for any purposes relating to trading or advising in securities or investor relations activities;
4.2 to pay the Commission the sum of $2,500, of which $500 represents part of the costs to the Commission of the investigation;
4.3 to comply fully with the Act, Securities Rules, B.C. Reg. 194/97, and any applicable regulations and guidelines; and
4.4 to keep the Executive Director informed at all times of the registered dealer through which he is permitted to trade under paragraph 5.1.1.
Order
[para 5]
5. Delisle consents to an order by the Executive Director (the “Order”) that:
5.1 under section 161(1)(c) of the Act, any or all of the exemptions described in sections 44 to 47, 74, 75, 98 or 99 of the Act do not apply to Delisle until 18 months after the date of the Order;
5.1.1 except that Delisle may rely on the exemption in section 45(2)(7) for trading in his own account, through one designated dealer;
5.2 under section 161(1)(d) of the Act, Delisle resign any position that he holds as a director and officer of any issuer and is prohibited from becoming or acting as a director or officer of any issuer, until the later of:
5.2.1 the date he successfully completes a course of study satisfactory to the Executive Director concerning the duties and responsibilities of directors and officers; and
5.2.2 eighteen months after the date of the Order;
5.3 under section 161(1)(d) of the Act, Delisle be prohibited from engaging in investor relations activities until eighteen months after the date of the Order; and
5.4 under section 161(1)(e) of the Act, Delisle be prohibited from disseminating to the public, or authorizing the dissemination to the public personally, or through any corporate entity, any information relating to trading or advising in securities or investor relations activities for a period of eighteen months from the date of the Order.
Waiver
[para 6]
6. Delisle 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 Settlement Agreement.
[para 7]
DATED at White Rock, British Columbia, on July 9, 2001.
“Del Delisle”
Del Michel Albert Delisle
“E. Filan” )
Witness Signature )
)
E.E. Filan )
Witness Name (please print) )
)
104 – 1081 Martin )
)
White Rock )
Address )
Retired )
Occupation
DATED at Vancouver, British Columbia, on July 17, 2001.
Steve Wilson
Executive Director