Settlements
LARRY DUANE BATEMAN [Sec. 161 & Settlement Agrmnt.]
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BCSECCOM #:
2001 BCSECCOM 713, 2001 BCSECCOM 714
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Document Type:
Sec. 161 & Settlement Agrmnt.
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Published Date:
2001-07-05
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Effective Date:
2001-07-05
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Details:
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2001 BCSECCOM 713
IN THE MATTER OF THE SECURITIES ACT
R.S.B.C. 1996, c. 418
AND
IN THE MATTER OF LARRY DUANE BATEMAN
Order Under Section 161
[para 1]
1. A Settlement Agreement has been executed between Larry Duane Bateman (“Bateman”) and the Executive Director, a copy of which is attached as Schedule “A” to this Order.
[para 2]
2. The Executive Director, considering that it would not be prejudicial to the public interest to do so, orders, that:
2.1 under section 161(1)(c) of the Securities Act, R.S.B.C. 1996, c. 418 (“the Act”), the exemptions described in sections 44 to 47, 74, 75, 98 and 99 of the Act, do not apply to Bateman in respect of the trading of securities of any issuer except that Bateman may continue to rely on section 45(2)(7) of the Act for trades in his own account for a period of two years from the date of the Order.
[para 3]
DATED at Vancouver, British Columbia, on July 5, 2001.
Steve Wilson
Executive Director
2001 BCSECCOM 714
Schedule “A”
IN THE MATTER OF THE SECURITIES ACT
R.S.B.C. 1996, c. 418
AND
IN THE MATTER OF LARRY DUANE BATEMAN
Settlement Agreement
[para 1]
1. The following settlement of issues has been reached between Larry Duane Bateman (“Bateman”) and the Executive Director.
Agreed Statement of Facts
[para 2]
2. Bateman acknowledges the following facts as correct only for the purposes of regulatory proceedings here or elsewhere:
2.1 Bateman was initially registered on May 3, 1990 as a registered representative for the sale of scholarship plan securities. On January 7, 1994 he became registered as a mutual fund salesperson and ceased to be registered as a mutual fund salesperson, on July 10, 1997;
2.2 Bateman has never been registered as a mortgage broker or a sub-mortgage broker under the Mortgage Brokers Act, R.S.B.C. 1996 c. 313;
2.3 Bateman traded in the securities offered by Multimetro Mortgage Corporation (“Multimetro”) namely, Canada House on Robson Second Mortgage Fund (“Canada House”);
2.4 trades of Canada House were made during the period of August 1997 to July 1998 (“the relevant period”), and the purchasers were primarily located in Kelowna, British Columbia;
2.5 during the relevant period Bateman traded in the securities of Canada House on behalf of Multimetro to 132 investors, all residents of British Columbia; and
2.6 the trades in Canada House by Bateman were made by Bateman when he was not registered to trade in the securities and when there was no exemption from the registration requirements of the Securities Act, R.S.B.C. 1996, c. 418 (“the Act”) contrary to section 34(1)(a) of the Act.
Mitigating Factors
[para 3]
3. In reaching this agreement the Executive Director has taken into account the following representations of Bateman:
3.1 Bateman has co-operated with the staff of the Commission in its investigation of this matter;
3.2 Multimetro was at all material times registered as a mortgage broker under the Mortgage Brokers Act;
3.3 section 46(e) of the Act allows persons to trade without registration in a mortgage offered for sale by a mortgage broker licensed under the Mortgage Brokers Act;
3.4 in the offering document relating to Canada House, Multimetro indicated that it was offering Canada House pursuant to the registration exemption in section 46(e) of the Act, and that Canada House was an exempt security pursuant to that provision;
3.5 Bateman believed, based on his review of section 46(e) of the Act, on his review of the offering document, and on the assurances given to him by Multimetro, that he could trade in Canada House without registration under the Act;
3.6 Bateman has compensated various investors in Canada House in the amount of $43,728 by, among other things, personally making interest payments to investors; and
3.7 Bateman and his spouse personally invested in Canada House and have incurred losses of $26,000 on their investment.
Undertaking
[para 4]
4. Bateman undertakes and agrees to the following:
4.1 to pay to the British Columbia Securities Commission, at the time of entering into this settlement, the sum of $15,000 of which $2,000 represents the cost of the investigation. The payment shall be made in accordance with the following schedule:
4.2 a lump sum payment of $5,100 to be paid immediately, and the balance in accordance with the terms set out in a Promissory Note, executed by Bateman in favour of the British Columbia Securities Commission.
[para 5]
5. Bateman consents to an order by the Executive Director (the “Order”) that:
5.1 under section 161(1)(c) of the Act, the exemptions described in sections 44 to 47, 74, 75, 98 and 99 of the Act do not apply to Bateman in respect of the trading of securities of any issuer except that Bateman may continue to rely on section 45(2)(7) of the Act for trades in his own account for a period of two years from the date of the Order.
Waiver
[para 6]
6. Bateman 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.
[para 7]
DATED at Kelowna, British Columbia, on June 26, 2001.
“Larry Duane Bateman”
Larry Duane Bateman
“Sue Newcomb”
Witness Signature
Sue Newcomb
Witness Name (please print)
3364 McMillan Rd
Westbank, BC
Address
Office Administrator
Occupation
DATED at Vancouver, British Columbia, on July 5, 2001.
Steve Wilson
Executive Director