Notices of Hearing & Temporary Orders

ROBERT A. DIIANNI (AKA ROBERT DIANNI) [Amended Sec. 161]

BCSECCOM #:
2001 BCSECCOM 500
Document Type:
Amended Sec. 161
Published Date:
2001-05-14
Effective Date:
2001-04-23
Details:


2001 BCSECCOM 500


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

AND

IN THE MATTER OF ROBERT A. DIIANNI (AKA ROBERT DIANNI)


Amended Notice of Hearing Under Section 161

[para 1]
1. A hearing will be held to give Robert A. DiIanni an opportunity to be heard before the British Columbia Securities Commission determines whether it is in the public interest to make the following orders:

1.1 pursuant to section 161(1)(c) of the Securities Act, R.S.B.C. 1996, c. 418 (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 DiIanni;

1.2 pursuant to section 161(1)(b) of the Act, that DiIanni be prohibited from purchasing securities;

1.3 pursuant to section 161(1)(d) of the Act, that DiIanni resign any position he may hold as a director or officer of any issuer and that he be prohibited from becoming or acting as a director or officer of any issuer;

1.4 pursuant to section 161(1)(d) of the Act, that DiIanni be prohibited from engaging in investor relations activities;

1.5 pursuant to section 174 of the Act, that DiIanni pay prescribed fees or charges for the costs of or related to the Hearing; and

1.6 such further and other relief as the Commission considers appropriate in the circumstances.

[para 2]
2. The Commission will be asked to consider the following facts and allegations before making its determinations:

2.1 On January 25, 1984, in proceedings before the United States Securities and Exchange Commission (the “SEC”), DiIanni was barred by the SEC from association with any broker, dealer, municipal securities dealer, investment adviser, or investment company for a period of at least four years.

2.2 On August 17, 1987, a Final Judgment of Permanent Injunction was issued by the United States District Court for the District of Massachusetts in a civil suit initiated by the SEC against DiIanni.

2.3 On December 20, 1988, DiIanni was Indicted by a Grand Jury in the United States District Court for the District of Massachusetts on 45 counts of mail fraud, wire fraud, securities fraud, interstate transportation of stolen property, and aiding and abetting.

2.4 On May 29, 1989, DiIanni plead guilty to six of the counts in the Indictment, including mail fraud, wire fraud, interstate transportation of stolen property, and securities fraud involving a series of schemes whereby he defrauded clients of over $3 million USD. On November 28, 1989, DiIanni was sentenced to imprisonment for 42 months, probation for a period of three years, payment of restitution to the victims, and a special condition that DiIanni comply with the Permanent Injunction obtained by the SEC.

2.5 During the period from May 3 to July 30, 1993, DiIanni had trading authority over several brokerage accounts which were involved in suspicious trading activities in the securities of Annisquam Art Company Ltd. (The trading activities of DiIanni occurred during the period from May 3 to July 30, 1993, in the securities of Annisquam Art Company Ltd. (now PHL Pinnacle Holdings Ltd.). The shares of Annisquam were listed for trading on the Vancouver Stock Exchange (now Canadian Venture Exchange (CDNX)).

2.6 On January 5, 1994, as a result of the criminal conviction, the SEC Injunction, and the trading activities of DiIanni, the Executive Director issued temporary orders (the “Temporary Orders”) under section 144 of the Securities Act, S.B.C. 1985, c. 83 (the “Former Act”), section 161 of the Act. The Temporary Orders had the effect of precluding DiIanni, among others, from trading in the securities of Annisquam.

2.7 The Executive Director also gave notice of a hearing (the “Notice of Hearing”) to be held on January 18, 1994, to give DiIanni an opportunity to be heard before the Commission to determine whether further orders should be made under section 144 of the Former Act.

2.8 The Commission has adjourned the hearing generally, by consent, on January 5, 1994 and February 16, 1994, and extended the Temporary Orders, until such time as a hearing is held and a decision rendered.

[para 3]
3. DiIanni may be represented by counsel at the Hearing and may make representations and lead evidence. DiIanni is requested to advise the Commission of his intention to attend the Hearing by contacting the Secretary to the Commission at P.O. Box 10142, Pacific Centre, 9th Floor, 701 West Georgia Street, Vancouver, BC, V7Y 1L2, or by telephone at (604) 899-6500.

[para 4]
4. DiIanni or his counsel are required to attend at the 12th Floor Hearing Room, 701 West Georgia Street, Vancouver, British Columbia at 9:00 a.m. on Friday, May 18, 2001, if he wishes to be heard before the Commission fixes a date for the Hearing.

[para 5]
5. Determinations may be made in this matter if DiIanni or his counsel do not appear at the Hearing.

[para 6]
DATED at Vancouver, British Columbia, on April 23, 2001.





Steve Wilson
Executive Director