Notices of Hearing & Temporary Orders

PERCY ELLISON SEKORA , et. al. [Notice]

BCSECCOM #:
2000 BCSECCOM 260
Document Type:
Notice
Published Date:
2000-11-17
Effective Date:
2000-11-02
Details:


2000 BCSECCOM 260


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

AND

IN THE MATTER OF PERCY ELLISON SEKORA
AND LAURIE ANN ONISHENKO

Notice of Hearing Under Section 161

[para 1]
1. TAKE NOTICE that a hearing will be held (the “Hearing”) to give Percy Ellison Sekora (“Sekora”) and Laurie Ann Onishenko (“Onishenko”) (collectively the “Respondents”) an opportunity to be heard before the British Columbia Securities Commission (the “Commission”) considers whether it is in the public interest to make the following orders:

1.1 pursuant to section 161(1)(b) and (c) of the Securities Act, R.S.B.C. 1996, c. 418 (the “Act”), that Sekora cease trading in or be prohibited from trading in any securities or exchange contracts, and 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 Sekora;

1.2 pursuant to section 161(1)(d) of the Act, that Sekora resign all positions that he holds as a director and officer of any issuer, and that he is prohibited from becoming or acting as a director or officer of any issuer;

1.3 pursuant to section 161(1)(b) and (c) of the Act, that Onishenko cease trading in or be prohibited from trading in any securities or exchange contracts, and that all of the exemptions described in sections 44 to 47, 74, 75, 98 and 99 of the Act do not apply to Onishenko;

1.4 pursuant to section 161(1)(d) of the Act, that Onishenko resign all positions that she holds as a director or officer of any issuer, and that she is prohibited from becoming or acting as a director or officer of any issuer;

1.5 pursuant to section 162 of the Act, that the Respondents pay an administrative penalty;

1.6 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

1.7 to make any other orders as 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 Sekora is a resident of Grande Prairie, Alberta.

2.2 Sekora was first registered as a salesman under the Securities Act, S.A. 1981, c. S-6.1 (the “Securities Act of Alberta”) in 1987.

2.3 At all material times, Sekora was registered as a salesman and as an associate portfolio manager, under the Securities Act of Alberta, with Majendie Charlton Securities Ltd. (“MCS”), a registered securities dealer in Alberta. Sekora was also a director of MCS and the designated branch manager of MCS's Grande Prairie office.

2.4 Sekora's employment with MCS was terminated in September 1997.

2.5 Sekora is no longer registered under the Securities Act of Alberta, and has never been registered under the Act.

2.6 Onishenko is a resident of Grande Prairie, Alberta, and is the wife of Sekora.

2.7 Onishenko has never been registered in any capacity under the Securities Act of Alberta, or the Act.

2.8 On February 23, 1999, the Alberta Securities Commission (the “ASC”) approved and accepted the settlement agreement entered into between the Respondents and the staff of the ASC (the “Alberta Settlement Agreement”).

2.9 The ASC concluded that the Respondents had acted contrary to the Securities Act and Rules of Alberta, and the public interest, and that it was in the public interest to make orders against the Respondents in Alberta. The ASC based its conclusions on the Agreed Statement of Facts contained in the Alberta Settlement Agreement.

2.10 In the Alberta Settlement Agreement, the Respondents admitted the following activities related to trading in securities in the province of British Columbia:

2.10.1 in March, 1997, Onishenko participated in a private placement of securities of Falcon Ventures International Corp. (“Falcon”), a private company incorporated in British Columbia. She purchased 833,000 units, priced below market value at the time, each unit consisting of one common share and one share purchase warrant, for a total acquisition price of $249,900;

2.10.2 Onishenko reported the trade, in Form 20A IP, (the “Form 20A IP Report”) and indicated she was purchasing these units as principal for her own account;

2.10.3 in fact, in March and April, 1997, the Respondents traded in those units of Falcon with 13 Alberta residents (the “Alberta Investors”), where such trades were distributions, without a preliminary prospectus and a prospectus having been filed with the ASC and receipts obtained therefore, contrary to Alberta securities legislation;

2.10.4 none of the Alberta Investors in Falcon have received the complete units of Falcon. The Alberta Investors only received the shares forming part of the units after the statutory hold period of one year. The Alberta Investors were not advised of the hold period at the time of their investment;

2.10.5 at all material times, Sekora was the registered representative responsible for accounts at MCS, which included the accounts of a British Columbia resident (the “BC Client”);

2.10.6 the BC Client was known, or ought to have been known, to Sekora to be a resident of British Columbia; and

2.10.7 while Sekora was acting as a registered representative responsible for the BC Client’s accounts, eight transactions were executed in the BC Client’s accounts without the BC Client’s prior knowledge or authorization, direction or approval.

2.11 Onishenko's Form 20A IP Report was misleading in a material respect and at the time and in light of the circumstances under which it was made, as she was not in fact purchasing as principal, but on behalf of the Alberta Investors. Onishenko made a statement or provided information in a record required to be filed, provided, delivered or sent under section 135 of the Securities Rules, B.C. Reg. 194/97 (the “Rules”) that was false or misleading, contrary to section 50(1)(d) of the Act. Further, Onishenko could not rely on the exemptions in sections 74(2)(4) and 45(2)(5) of the Act because she was not purchasing as principal and in the result she participated in an illegal distribution in the securities of Falcon.

2.12 Sekora traded in securities of Falcon and advised the BC Client without being registered in British Columbia, and without an exemption, contrary to the registration requirements in section 34(1) of the Act.

2.13 Sekora also acted as a “portfolio manager” by making discretionary trades in the BC Client's accounts, without registration, contrary to section 34(1) of the Act.

[para 3]
3. TAKE NOTICE that 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, BC V6Z 2H4, phone: (604) 899-6534.

[para 4]
4. AND TAKE NOTICE that the Respondents or their counsel are required to attend at the 12th Floor, 701 West Georgia Street, Vancouver, British Columbia, on December 13, 2000, at 10:00 a.m., if they wish to be heard before the Commission sets a date for the Hearing.

[para 5]
5. AND TAKE NOTICE that determinations may be made in this matter if the Respondents or their counsel do not appear at the Hearing.
    [para 6]
    DATED at Vancouver, British Columbia, on November 2, 2000.




    Steve Wilson
    Executive Director
    ©2024 British Columbia Securities Commission