Settlements

KERRY WAYNE GIBBONS [Agreed Stmt]

BCSECCOM #:
Document Type:
Agreed Stmt
Published Date:
1998-05-01
Effective Date:
1998-04-21
Details:


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

AND

IN THE MATTER OF KERRY WAYNE GIBBONS

Agreed Statement of Facts and Undertaking


The following agreement has been reached between Kerry Wayne Gibbons (Gibbons) and the Executive Director:

STATEMENT OF AGREED FACTS

1. Gibbons acknowledges the following facts as correct:
      1.1 Between August 1991 and August, 1995 (the “Relevant Period”) Gibbons was a registrant pursuant to the Securities Act, R.S.B.C. 1996, c. 418 as a mutual fund salesperson;

      1.2 during the Relevant Period, Gibbons was employed by Vantage Securities Limited, a registered securities dealer and subsequently by CIG Consumers Investments Ltd., (“CIG”), then a registered mutual fund dealer;

      1.3 Gibbons was the President of CIG, and there was no supervision of Gibbons by Vantage while he was at CIG;

      1.4 during the Relevant Period, on Gibbons’s advice, approximately 112 of Gibbons’s clients (the “Clients”) borrowed money to purchase money market mutual funds (the “Purchases”);
      1.5 at the time of the Purchases, the money market mutual funds were providing a rate of return which was less than the borrowing cost of each of the Clients;

      1.6 Gibbons told the Clients they could make money even if the rate of return on the money market mutual funds remained below that of their borrowing costs;

      1.7 because the borrowing cost to each of the Clients was higher than the return on the money market mutual fund, and was likely to remain so, Gibbons failed to act in the best interests of the Clients. Gibbons represents that he intended to say that the investment made economic sense in the long term, but the clients did not understand that to be the case.

      1.8 Because of the miscommunication with Gibbons, the clients acquired investment portfolios which were too risky or unsuitable for them, in violation of section 43 of the Securities Regulation, B.C. Reg. 270/86; now section 48 of the Securities Rules, B.C. Reg.194/97;

      1.9 Gibbons represents that he sincerely believes in the validity of his investment program and that he was not motivated by any dishonest or deceptive intent;

      1.10 in all cases, the Clients’ money was invested as directed by the Clients.

SETTLEMENT TERMS


2. Gibbons agrees not to be registered to sell securities for a period of fifteen years from the date of this Agreement, or until such time as he completes and passes the Canadian Securities Course, whichever is later.

3. Gibbons agrees to pay the British Columbia Securities Commission the sum of $10,000, which sum shall become payable upon Gibbons’s application for registration under the Act.

4. Gibbons agrees to be placed under close supervision by his employer for a period of one year from the date he is reregistered to sell securities.

5. Gibbons 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.



DATED at Vancouver, British Columbia, on April 21, 1998.




“Larry Hyette”___________________)
Witness Signature)
Larry Hyette____________________)___________________
Witness Name)Kerry Wayne Gibbons
______________________________)
)
2055 Ingledew Street, Prince George)
Address)
Self Employed__________________)
Occupation)

Michael J. Watson
A/Executive Director
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