Notices of Hearing & Temporary Orders
CAREY BRIAN DENNIS [Temporary Order and Notice of Hearing]
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BCSECCOM #:
2001 BCSECCOM 626
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Document Type:
Temporary Order and Notice of Hearing
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Published Date:
2001-06-12
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Effective Date:
2001-05-30
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Details:
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2001 BCSECCOM 626
IN THE MATTER OF THE SECURITIES ACT,
R.S.B.C. 1996, C. 418
AND
IN THE MATTER OF CAREY BRIAN DENNIS
Temporary Order and Notice of Hearing Under Section 161
[para 1]
1. TAKE NOTICE that a hearing will be held (the “Hearing”) to give Carey Brian Dennis (“Dennis”) an opportunity to be heard before the British Columbia Securities Commission (the “Commission”) determines whether it is in the public interest to make the following orders:
1.1 under 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 44-47, 74, 75, 98 or 99, do not apply to Dennis;
1.2 under section 161(1)(d) of the Act that Dennis resign any position he 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;
1.3 under section 161(1)(d) of the Act that Dennis be prohibited from engaging in investor relations activities;
1.4 under section 174 of the Act that Dennis pay prescribed fees or charges for the costs of or related to the hearing; and,
1.5 any other orders the Commission may deem appropriate in the circumstances.
[para 2]
2. AND TAKE NOTICE that the Commission will be asked to consider the following facts and allegations in making its determinations:
2.1 From September 27, 1993 until July 11, 1997 (the “Relevant Times”), Dennis was registered under the Act as a mutual fund salesperson.
2.2 During the Relevant Times, Dennis was employed by Mutual Investco Inc. (“Mutual”), now known as Clarica Life Assurance Company.
2.3 On June 28, 2000, the Royal Canadian Mounted Police laid Information No. 15017 against Dennis at the Salmon Arm Court Registry. The Information alleged six counts of fraud and seven counts of theft that occurred between June 1, 1993 and June 30, 1997.
2.4 In each alleged incident, Dennis took $464,324.56 from residents of British Columbia (the “Investors”) purportedly in exchange for the sale of Mutual’s investment products. He would then convert the money to his own personal use.
2.5 On August 18, 2000, Dennis entered into a recognizance requiring him to do the following:
2.5.1 resign any position that he may presently hold as a director or officer of any corporation anywhere;
2.5.2 not to become or act as a director or officer of any corporation anywhere;
2.5.3 not to hold any position of financial responsibility in or for any corporation, partnership, society, club, or incorporated association;
2.5.4 not to directly or indirectly sell or purchase securities anywhere or engage in any acts in the furtherance thereof; and
2.5.5 not to provide any kind of investment advice or counselling to any person anywhere or promote any kind of investment.
2.6 Mutual terminated Dennis’ employment on July 11, 1997.
Breaches of the Act and Rules
[para 3]
3. Dennis breached the following provisions of the Act and Securities Rules, B.C. Reg. 194/97 (the “Rules”):
3.1 Dennis directly engaged in a series of transactions relating to a trade in a security with the Investors while he knew, or ought reasonably to have known, that the transactions perpetuated a fraud on persons in British Columbia, contrary to section 57(b) of the Act.
3.2 Dennis failed to deal fairly, honestly, and in good faith with the Investors contrary to section 14 of the Rules.
[para 4]
4. The Executive Director considers the length of time to hold a hearing under section 161(1) of the Act could be prejudicial to the public interest.
[para 5]
5. The Executive Director, considering that it would be in the public interest to do so, orders under section 161(2) of the Act (the “Temporary Order”) that:
5.1 any or all of the exemptions described in section 44 to 47, 74, 75, 98 or 99 do not apply to Dennis, pursuant to section 161(1)(c);
5.2 Dennis resign any position he holds 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, pursuant to section 161(1)(d); and
5.3 Dennis be prohibited from engaging in investor relations activities, pursuant to section 161(1)(d);
for a period expiring on June 14, 2001.
[para 6]
6. TAKE NOTICE that the Hearing will be commenced before the Commission at the 12th Floor Hearing Room, 701 West Georgia Street, Vancouver, British Columbia, on June 14, 2001, at 10:00 a.m.
[para 7]
7. AND TAKE NOTICE that at the Hearing the staff of the Commission will bring the following applications:
7.1 that the matter be adjourned for 120 days to await the outcome of the criminal proceedings; and
7.2 that the Temporary Order be extended until such time as the Hearing is completed and a decision rendered.
[para 8]
8. AND TAKE NOTICE that Dennis may be represented by counsel at the hearing and may make representations and lead evidence. Dennis or his counsel are requested to advise the Commission of their intention to attend the Hearing by contacting the Secretary of the Commission at P.O. Box 10142, Pacific Centre, 701 West Georgia Street, Vancouver, BC, V7Y 1L2, or by telephone to (604) 899-6500.
[para 9]
9. AND TAKE NOTICE that determinations may be made in this matter if Dennis or his counsel do not appear at the Hearing.
[para 10]
DATED at Vancouver, British Columbia, on May 30, 2001.
Steve Wilson
Executive Director