Notices of Hearing & Temporary Orders

RANBIR SINGH DHALIWAL [Sec. 161]

BCSECCOM #:
Document Type:
Sec. 161
Published Date:
2000-09-01
Effective Date:
2000-08-17
Details:


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

AND

IN THE MATTER OF RANBIR SINGH DHALIWAL

Notice of Hearing Under Section 161

1. TAKE NOTICE that a hearing will be held (the “Hearing”) to give Ranbir Singh Dhaliwal (“Dhaliwal”) 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 to make an order 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 to 47, 74, 75, 98 or 99 of the Act do not apply to Dhaliwal;
      1.2 to make an order under section 161(1)(b) of the Act that Dhaliwal cease trading in, or be prohibited from purchasing, any securities or exchange contracts;
      1.3 to make an order under section 161(1)(d) of the Act that Dhaliwal resign any position he holds as a director or officer of any issuer;
      1.4 to make an order under section 161(1)(d) of the Act that Dhaliwal be prohibited from becoming or acting as a director or officer of any issuer;
      1.5 to make an order under section 161(1)(d) of the Act that Dhaliwal be prohibited from engaging in any investor relations activities;

      1.6 to make an order under section 161(1)(f) of the Act that Dhaliwal be subject to restrictions in any registration under the Act;
      1.7 to make an order under section 162 of the Act that Dhaliwal pay an administrative penalty;
      1.8 to make an order under section 174 of the Act that Dhaliwal pay prescribed fees or charges for the costs of, or related to, the Hearing; and

1.9 to make any other orders as may be appropriate in the circumstances.

2. AND TAKE NOTICE that the Commission will be asked to consider the following facts and allegations in making its determination:
      2.1 Dhaliwal was a resident of British Columbia, at all material times.

      2.2 Dhaliwal became a registered representative in August, 1989. From August, 1991 to October, 1996, Dhaliwal was employed as a registered representative by Brink, Hudson & Lefever Ltd. (“Brink”).
      2.3 On October 29, 1996, the Executive Committee of the Vancouver Stock Exchange (“VSE”) issued an interim order suspending Dhaliwal's status as a registered representative, and as an approved person.
      2.4 On January 8, 1997, Dhaliwal and the VSE entered into a Settlement Agreement, wherein Dhaliwal admitted he committed the infractions set out in a Citation issued by the VSE on October 31, 1996 (the “Citation”). Those admitted infractions are as follows:

          2.4.1 contrary to VSE Rule F.2.30 or VSE By-Law 5.01(2), during the month of April, 1995, Dhaliwal accepted remuneration, namely 20,000 shares of Hollywood Trenz Inc., from a person other than his employer Brink, namely Harvey Rubenstein (“Rubenstein”). This remuneration was in respect of activities carried out by Dhaliwal on behalf of Brink, and in connection with the sale or placement of securities of Hollywood Trenz Inc.;

          2.4.2 contrary to VSE Rule F.1.03, or VSE Rule F.1.04, or VSE By-Law 5.01(2), between December 1, 1993 and April 30, 1994, Dhaliwal accepted orders from Rubenstein for the trading of securities in a Brink account in the name of Bearmoon Entertainment Inc., knowing that the account was the nominee account of Rubenstein;

          2.4.3 contrary to VSE Rule F.1.03, or VSE Rule F.1.04, or VSE By-Law 5.01(2), between June 1, 1994 and May 31, 1995, Dhaliwal accepted orders from Rubenstein for the trading of securities in a Brink Canadian dollar, cash account, in the name of Robert Patterson (“Patterson”), knowing that the account was the nominee account of Rubenstein;

          2.4.4 contrary to VSE Rule F.1.03, or VSE Rule F.1.04, or VSE By-Law 5.01(2), between August 1, 1994 and October 31, 1995, Dhaliwal accepted orders from Rubenstein for the trading of securities in a Brink United States dollar, cash account, in the name of Patterson, knowing that the account was the nominee account of Rubenstein;

          2.4.5 contrary to VSE Rule F.2.22(2)(a) or VSE By-Law 5.01(2), between December 1, 1993 and February 29, 1996, Dhaliwal handled discretionary orders and exercised discretion in the handling of a Brink account in the name of Sea to Sky Wholesale Supplies Ltd.;

          2.4.6 contrary to VSE Rule F.1.02(2) or VSE By-Law 5.01(2), between August 1, 1991 and April 30, 1996, Dhaliwal accepted orders from a third party for 16 Brink accounts without having on file trading authorities signed by the clients empowering the third party to enter orders on the accounts; and

          2.4.7 in the alternative to the infraction described in paragraph 2.4.6, above, Dhaliwal, in respect of one of the 16 Brink accounts noted in that paragraph, between August 1, 1991 and April 30, 1996, handled discretionary orders and exercised discretion in the handling of the account, contrary to VSE Rule F.2.22(2)(a) or VSE By-Law 5.01(2).
      2.5 Dhaliwal knew or ought to have known that accepting a commission from a person other than his employer was in violation of VSE Rule F.2.30 and VSE By-Law 5.01(2), and was contrary to the public interest in the disclosure of such remuneration to clients, and the integrity of registered representatives.

      2.6 Dhaliwal knew or ought to have known that the documents maintained by him at Brink, with respect to the beneficial ownership of accounts, or nominee accounts, in which he executed trades, were insufficient.

      2.7 Dhaliwal's improper trading in nominee accounts violated VSE Rules F.1.03 and F.1.04, VSE By-Law 5.01(2), andsection 14(2) of the Securities Rules, B.C. Reg. 194/97(the “Rule(s)”). Dhaliwal, a registered representative, did not deal fairly, honestly and in good faith with his clients, contrary to the public interest.

      2.8 Dhaliwal's improper third party trading violated VSE Rule F.1.02(2), VSE By-Law 5.01(2), and sections 14(2) and 39 of the Rules. Dhaliwal, a registered representative, did not deal fairly, honestly and in good faith with his clients, contrary to the public interest. Further, Dhaliwal was required by section 39 of Rules, to maintain written authorization or ratification from his client naming a person other than his client who could provide instructions to Dhaliwal, where Dhaliwal accepted trading instructions in the client's account from that person. Dhaliwal failed to meet this requirement.

      2.9 Dhaliwal's improper discretionary trading in his clients' accounts violated VSE Rule F.2.22.(2)(a) and VSE By-Law 5.01(2). Moreover, by executing discretionary trades in his clients' accounts Dhaliwal acted as a “portfolio manager”, as defined in the Act. A portfolio manager is a type of adviser for which Dhaliwal was not registered under the Act, and from which registration Dhaliwal was not exempt. Accordingly, Dhaliwal breached section 34(1)(c) of the Act.

3. AND TAKE NOTICE that Dhaliwal may be represented by counsel at the Hearing, and make representations and lead evidence. Dhaliwal is requested to advise the Commission of his intention to attend the Hearing by informing the Secretary to the Commission at 1200 - 865 Hornby Street, Vancouver, British Columbia, V6Z 2H4.

4. AND TAKE NOTICE that Dhaliwal or his counsel are required to attend at the 7th Floor Hearing Room, 865 Hornby Street, Vancouver, British Columbia, on Wednesday, September 6, 2000, at 9:00 a.m., if he wishes to be heard before the Commission sets a date for the Hearing.

5. AND TAKE NOTICE that determinations may be made in this matter if Dhaliwal or his counsel do not appear at the Hearing.


DATED at Vancouver, British Columbia, on August 17, 2000.






Steve Wilson
Executive Director
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