Notices of Hearing & Temporary Orders
Frederick Johnathon Nielsen, previously known as Frederick John Gilliland [Notice of Hearing]
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BCSECCOM #:
2010 BCSECCOM 596
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Document Type:
Notice of Hearing
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Published Date:
2010-10-21
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Effective Date:
2010-10-13
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Details:
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2010 BCSECCOM 596
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2010 BCSECCOM 596
Notice of Hearing
Frederick Johnathon Nielsen,
previously known as Frederick John Gilliland
Section 161 of the Securities Act, RSBC 1996, c. 418
Frederick Johnathon Nielsen,
previously known as Frederick John Gilliland
Section 161 of the Securities Act, RSBC 1996, c. 418
¶ 1 The Commission will hold a hearing at which the Executive Director will tender evidence, make submissions and apply for orders against Frederick Johnathon Nielsen, previously known as Frederick John Gilliland, under sections 161, 162 and 174 of the Securities Act, RSBC 1996, c. 418, based on the following facts:
Respondent
- 1. Frederick Johnathon Nielsen (Nielsen) resides in British Columbia.
2. Nielsen was previously known as Frederick John Gilliland.
3. Nielsen has never been registered under the Act in any capacity.
Misconduct
Telephoning Residences and Trading in Securities without Registration
- 4. From March through May 2009, Nielsen organized and operated a telephone room for the purpose of marketing and selling shares in Green Farms International Inc. (Green Farms), a private U.S. company incorporated in Kentucky.
5. The telephone room was located in a residence in Surrey, British Columbia.
6. Nielsen hired at least four salespeople to work in the telephone room. Nielsen supervised the salespeople, and instructed them to make telephone calls from the telephone room to numerous residences, primarily in the United States, for the purpose of marketing and selling shares in Green Farms.
7. Nielsen occasionally participated directly in the telephone calls to residences. More often, the salespeople generated leads for Nielsen to follow up by email. Nielsen emailed potential investors with further information about Green Farms, and arranged for further correspondence with a company principal to close any resulting sale of Green Farms’ shares.
8. By telephoning residences from within British Columbia for the purpose of trading in a security, and by having salespeople telephone residences from within British Columbia on his behalf for the purpose of trading in a security, Nielsen contravened section 49 of the Act.
9. By taking actions in furtherance of a trade in Green Farms securities, Nielsen contravened section 34 of the Act by trading in securities without being registered.
Hearing Process
¶ 2 At the Hearing, Nielsen may be represented by counsel, make submissions and tender evidence. Nielsen is requested to advise the Commission of his intention to attend the Hearing by informing the Secretary to the Commission at PO Box 10142, Pacific Centre, 701 West Georgia Street, Vancouver, BC V7Y 1L2 phone: (604) 899-6500; email: commsec@bcsc.bc.ca.
¶ 3 Nielsen or his counsel is required to attend at the 12th Floor Hearing Room, 701 West Georgia Street, Vancouver, British Columbia, on November 10, 2010, at 9:00 am if he wishes to be heard before the Commission sets a date for the Hearing.
¶ 4 If Nielsen or his counsel do not appear at the Hearing, the Executive Director may apply to have questions of liability and sanction heard at the same time. Determinations adverse to Nielsen may be made in his absence.
¶ 5 October 13, 2010
Paul C. Bourque
¶ 6 Paul C. Bourque, Q.C.
Executive Director