BCSC

Decisions

STEPHEN C. SAYRE, et. al. [Sec. 151]

BCSECCOM #: 2001 BCSECCOM 420	Document Type: Sec. 151
Published Date: 2001-04-20	Effective Date: 2001-04-13
Details:

2001 BCSECCOM 420

COR# 00/099

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

AND

IN THE MATTER OF STEPHEN C. SAYRE,
INDEPENDENT FINANCIAL REPORTS, INC., SILVER SCREEN
INDUSTRIES, INC. AND PREMIER FILM ADVENTURES, INC.

AND

IN THE MATTER OF THE BANK OF MONTREAL

Direction to Freeze Property Under Section 151

[para 1]
1. WHEREAS staff of the British Columbia Securities Commission (the “Staff”) has represented to the Commission that:

1.1 A Temporary Restraining Order has been issued at the request of the United States Securities and Exchange Commission (the “SEC”) pursuant to an emergency civil injunctive action by the United States District Court for the Central District of California, Western Division, on April 8, 2000, against Stephen C. Sayre (“Sayre”), Independent Financial Reports, Inc. (“IFR”), Silver Screen Industries, Inc. (“Silver Screen”) and Premier Film Adventures, Inc. (“Premier Film”) to freeze all of Sayre’s, IFR’s and Silver Screen’s assets, including all accounts at any bank, financial institution or brokerage firm held in their name, for their benefit, or over which they have control.

1.2 The action was taken in respect of a complaint by the SEC which allege that the Parties made false and misleading statements concerning the securities of eConnect, Inc. (“eConnect”), an issuer quoted on the NASD OTC Bulletin Board, for the purpose of manipulating the price of the securities of eConnect, in violation of SEC laws.

1.3 IFR and Sayre appear to have distributed recommendations concerning eConnect through Internet connections, which appeared on Internet Web sites such as Silicon Investor, Raging Bull and Big Charts.

1.4 IFR and Sayre realized, according to the SEC, at least $1,435,997 U.S. in profits through their sales of the securities of eConnect, after they made their recommendations.

1.5 Sayre is the sole officer and director of IFR and is the president, treasurer, and secretary of Silver Screen. He has no training in financial analysis, he runs a tree trimming business, and is involved occasionally in the film industry.

1.6 On March 15 and 17, 2000, Sayre, through an account in the name of Silver Screen maintained at the Bank of America in Las Vegas, Nevada (“Bank of America”), allegedly wire transferred a total $810,425.00 U.S., to the branch of the Bank of Montreal located at 595 Burrard Street in Vancouver, British Columbia (“BOM”), for deposit to the account of Exchange Bank and Trust Inc. (“EBT”). On March 17, 2000, Sayre, through the Silver Screen account maintained at the Bank of America, allegedly wire transferred $400,000 U.S., to the BOM, for deposit to the account of Sterling International Bank (“Sterling”).

1.7 On April 5, 2000, Sayre, through an account in the name of Premier Film maintained at the Bank of America, allegedly wire transferred a further $130,000 U.S., to the BOM, for deposit to the account of EBT.

1.8 It appears that the foregoing amounts were illegal profits obtained from the sale of the securities of eConnect based upon the recommendations made by IFR and Sayre on Internet Web sites.

1.9 The EBT and Sterling accounts held at the BOM appear to be linked to the Silver Screen and Premier Film accounts held at the Bank of America, and are the ones to which monies were transferred from accounts evidently controlled by Sayre.

1.10 It appears that Sayre may be using accounts in British Columbia to avoid the laws of the United States with respect to those monies and may be using British Columbia as a haven to conceal funds gained by illegal or criminal activity. In addition, if Sayre was involved in trading in this jurisdiction, the funds may represent fraudulent transactions pursuant to section 57 and 57.1 of the Securities Act, R.S.B.C. 1996, c. 418 (the “Act”).

[para 2]
2. AND WHEREAS the Commission has appointed each of Wayne Armistead and Linda Milani under section 142 of the Act, to investigate, inquire into and examine the records of, and in the possession and control of, the Bank of Montreal, Sayre, IFR, Silver Screen and Premier Film, among others, with respect to the trading in, and the promotion of, the securities of eConnect from January 1, 2000, forward.

[para 3]
3. NOW THEREFORE the Commission, considering it in the public interest, orders under section 151 of the Act, that the branch of the Bank of Montreal located at 595 Burrard Street, in Vancouver, British Columbia, hold any funds, securities, exchange contracts or other property, which Sayre, IFR, Silver Screen, Premier Film, EBT or Sterling, may have on deposit, under its control or safekeeping on behalf of the named parties, or any other entity or account in which any of the named parties have a beneficial interest.

[para 4]
4. AND THE COMMISSION FURTHER ORDERS that Sayre, IFR, Silver Screen, Premier Film, EBT and Sterling, refrain from withdrawing any funds, securities, exchange contracts or other property held at the branch of the Bank of Montreal located at 595 Burrard Street, in Vancouver, British Columbia, pursuant to this order.

[para 5]
DATED at Vancouver, British Columbia, on April 13, 2000.

Joyce C. Maykut, Q.C., Vice Chair