Notices of Hearing & Temporary Orders

COLLEEN A. FIESSEL, et. al. [Sec. 161]

BCSECCOM #:
Document Type:
Sec. 161
Published Date:
2000-02-25
Effective Date:
2000-02-04
Details:


THE MATTER OF THE SECURITIES ACT
R.S.B.C. 1996, c. 418, as am. S.B.C. 1998, c. 42, s. 47; 1999, c. 20

AND

IN THE MATTER OF COLLEEN A. FIESSEL, LEONARD E. FIESSEL
AND ROBERT L. SHULL


Notice of Hearing Under Section 161


1. TAKE NOTICE that a hearing will be held on a date to be determined at the 7th Floor Hearing Room, 865 Hornby Street, Vancouver, British Columbia (the “Hearing”), to give Colleen A. Fiessel, Leonard E. Fiessel and Robert L. Shull (collectively, the “Respondents”) an opportunity to be heard before the British Columbia Securities Commission (the “Commission”). At the Hearing the Commission will be asked by the Staff of the Commission to make the following orders in the public interest:
      1.1 an order under section 161(1)(c) of the Securities Act, R.S.B.C. 1996, c. 418, as am. S.B.C. 1998, c. 42, s. 47; 1999, c. 20 (the “Act”) that any or all of the exemptions described in sections 44 to 47, 74, 75, 98 or 99 of the Act do not apply to the Respondents;

      1.2 an order under section 161(1)(d) of the Act that the Respondents resign any position they hold as directors or officers of any issuer;

      1.3 an order under section 161(1)(d) of the Act that the Respondents be prohibited from becoming or acting as directors or officers of any issuer;

      1.4 an order under section 161(1)(d) of the Act that the Respondents be prohibited from engaging in investor relations activities;

      1.5 an order under section 174 of the Act that the Respondents pay the prescribed fees or charges for the costs of or related to the Hearing; and

      1.6 any other order as may be appropriate under the circumstances.
2. AND TAKE NOTICE that the Commission will be asked to consider the following facts and allegations in making its determinations:
    Introduction

        2.1 Colleen A. Fiessel (“Colleen Fiessel”) is a resident of British Columbia and is not currently a registrant under the Act. Colleen Fiessel was formerly registered as a registered representative employed by Canarim Investments Corporation, now Canaccord Capital Corporation (“Canarim”), with said registration terminating on October 26, 1989.

        2.2 Leonard E. Fiessel (“Leonard Fiessel”) is a resident of British Columbia and is not currently a registrant under the Act. Leonard Fiessel was formerly registered as a registered representative employed by Canarim, with said registration terminating on April 30, 1989.

        2.3 Robert L. Shull (“Shull”) is a resident of British Columbia. Shull has never been registered in any capacity under the Act.
    Breaches of Vancouver Stock Exchange By-laws and Rules

        2.4 In March 1989, while employed by the firm Canarim, the following sanctions were imposed by the Vancouver Stock Exchange, now the Canadian Venture Exchange (the "Exchange") against Leonard Fiessel and Colleen Fiessel after it was found that they participated in a market manipulation scheme in violation of Exchange By-law 5.02(d)(1) and (h) and Exchange Rule F. 2.17:
            2.4.1 as against Leonard Fiessel:
                2.4.1.1 withdrawal of Exchange approval for a period of three months;

                2.4.1.2 a fine in the amount of $40,000.00;

                2.4.1.3 disqualification from holding a position as branch manager of a registrant for nine months; and

                2.4.1.4 a one-year period of strict supervision.
            2.4.2 as against Colleen Fiessel:
                2.4.2.1 withdrawal of Exchange approval for a period of one month;

                2.4.2.2a fine in the amount of $10,000.00; and

                2.4.2.3 a one-year period of strict supervision.

        2.5 In September, 1991, the Exchange sanctioned Colleen Fiessel for executing trades in clients’ accounts without the clients’ authorization, in violation of Exchange Rule F. 2.22(3). The Exchange imposed the following sanctions:
            2.5.1 withdrawal of Exchange approval for 15 years, and

            2.5.2 a direction that any future employment in the industry would be subject to a suitability hearing.
    Securities and Exchange Commission Judgments and Settlements

        2.6 On August 21, 1996, Shull consented to a Judgment of Permanent Injunction and Disgorgement in an action brought against him by the United States Securities and Exchange Commission (the “SEC”) in the U.S. District Court for the District of Massachusetts (the “U.S. Court”), as a result of his participation in the manipulation of the securities of an Alberta Stock Exchange-listed company, Fairmont Resources, Inc. (“Fairmont”), now Endeavour Resources Inc. Shull agreed to an order permanently restraining and enjoining him from directly or indirectly violating the Securities Act of 1933 (the “U.S. Securities Act”) and the Securities Exchange Act of 1934 (the “Exchange Act”) and an order for disgorgement in the amount of $667,770.46.

        2.7 On August 21, 1996, the SEC obtained a Default Judgment in the U.S. Court against Colleen Fiessel, as a result of her participation in the manipulation of the securities of Fairmont. The U.S. Court found that Colleen Fiessel violated the Exchange Act and the U.S. Securities Act and received ill-gotten gains in the amount of $109,717.72. An order of disgorgement was made against Colleen Fiessel in the amount of $109,717.72 together with interest of $29,884.39 in favour of the SEC.

        2.8 On August 21, 1996, the SEC obtained a Final Judgment of Permanent Injunction, Disgorgement and Other Relief against Leonard Fiessel in the U.S. Court and a finding was made that Leonard Fiessel received ill-gotten gains in the amount of $440,602.75 as a result of his participation in the manipulation of the market for the securities of Fairmont. A further order was made for disgorgement of $440,602.75, together with interest in the amount of $120,009.17, payable to the SEC.

        2.9 The above conduct was detrimental to the interests of the public and contrary to the Act.

        Recent Securities and Exchange Commission Action

        2.10 On April 8, 1998, Leonard Fiessel and Shull were charged in the U.S. Court in the matter of United States of America v. Leonard E. Fiessel, Robert L. Shull, Terry L. Shull and Patrick A. Collins under the Conspiracy, Securities Fraud, Wire Fraud and Aiding and Abetting provisions of the United States Code (“U.S.C.”) as a result of the alleged manipulation of the market in the securities of Fairmont (the “Indictment”).

        2.11 In or about December 1999, the United States Department of Justice served summonses on Leonard Fiessel and Shull seeking their extradition for the purposes of making them available for the trial of the Indictment in the U.S. Court.

        2.12 In light of the recent SEC actions, the breaches of the Exchange By-laws and Rules and the judgments and settlements with the SEC referred to above, the Respondents continued participation in the capital markets in British Columbia is contrary to the public interest.
    3. The Respondents may be represented by counsel at the Hearing and may make representations and lead evidence. The Respondents are requested to advise the Commission of their intention to attend the Hearing by contacting the Secretary to the Commission at 1200 - 865 Hornby Street, Vancouver, British Columbia, V6Z 2H4.

    4. The Respondents are required to attend at the 7th Floor Hearing Room, 865 Hornby Street, Vancouver, British Columbia, on February 25, 2000, at 11:00 a.m., if they wish to be heard before the Commission sets a date for the Hearing.

    5. Determinations may be made in this matter if the Respondents or their counsel do not appear at the Hearing.

    DATED at Vancouver, British Columbia, on February 4, 2000.


    Steve Wilson
    Executive Director
    ©2024 British Columbia Securities Commission