Notices of Hearing & Temporary Orders

GORDON DIX JR., et. al. [Sec. 161]

BCSECCOM #:
2001 BCSECCOM 177
Document Type:
Sec. 161
Published Date:
2001-02-07
Effective Date:
2001-01-15
Details:


2001 BCSECCOM 177


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

AND

IN THE MATTER OF GORDON DIX JR., RONALD JAMES HENRY
AND SOTA MINING CORPORATION


Notice of Hearing Under Section 161

[para 1]
1. TAKE NOTICE that a hearing will be held (the “Hearing”) to give Sota Mining Corporation, Gordon Dix Jr., and Ronald James Henry (collectively, the “Respondents”) an opportunity to be heard, before the British Columbia Securities Commission (the “Commission”) considers whether it is the public interest to make the following orders:

1.1 pursuant to 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 the Respondents for a specified period of time;

1.2 pursuant to section 161(1)(d) of the Act that the Respondents resign any position they hold as directors or officers of any issuer and be prohibited from becoming or acting as directors or officers of any issuer;

1.3 pursuant to section 161(1)(d) of the Act that the Respondents be prohibited from engaging in investor relations activities;

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

1.5 pursuant to section 174 of the Act that the Respondents pay the prescribed fees or charges for the costs of or related to the Hearing; and

1.6 to make 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 Sota Mining Group Ltd. (“Sota”) is a company formed under the laws of British Columbia, and has never been a reporting issuer under the Act.

2.2 Ronald James Henry is the sole director and president of Sota. Henry has never been registered in any capacity under the Act.

2.3 Gordon Stephen Dix Jr. (“Dix”) was at all relevant times the vice president, investor relations of Sota. Dix has never been registered in any capacity under the Act.

2.4 According to Sota promotional material, Sota is in the business of acquiring and developing undervalued mining properties.

2.5 From on or about April, 1998, to April, 2000, (the “Relevant Period”) Dix and Henry each solicited and obtained funds from investors in British Columbia to invest in Sota.

2.6 Dix and Henry each represented to various Sota investors that in return for investing in Sota they would each receive a percentage interest in the net profits of certain mining projects.

2.7 None of Dix, Henry or Sota provided any of the investors in Sota with a prospectus or an offering memorandum regarding an investment in Sota.

2.8 Dix attended at the residences of individuals for the purpose of trading in the securities of Sota.

2.9 Dix guaranteed at least one Sota investor that she would receive a specific amount of money in return for her investment.

2.10 Dix represented to at least one Sota investor that her investment in Sota would be returned to her within a specific period of time.

2.11 Henry represented to some Sota investors that work on the Lorna Judge Mine was to commence shortly. However at the time that Henry made the said representation, Sota had not received the requisite permits or entered into a joint venture agreement with the entities that held the mineral rights to the Lorna Judge Mine.

Alleged Violations of the Act

2.12 During the Relevant Period Dix did the following:

2.12.1 traded in the securities of Sota with individuals in British Columbia without an exemption from the registration requirements of the Act and without being registered to trade under the Act, contrary to section 34(1)(a) of the Act;

2.12.2 acted as an advisor in British Columbia without an exemption from the registration requirements of the Act and without being registered to advise under the Act, contrary to sections 34(1)(c) of the Act;

2.12.3 attended at the residences of persons in British Columbia for the purpose of trading in a security, contrary to section 49(2) of the Act;

2.12.4 while engaging in investor relations, gave an undertaking related to the future value of the securities of Sota, contrary to section 50(1)(b) of the Act;

2.12.5 while engaging in investor relations, made statements to at least one investor regarding when she would be able to redeem her investment, that he knew or ought reasonably to have known were misrepresentations, contrary to section 50(1)(d) of the Act; and

2.12.6 distributed the securities of Sota in British Columbia without filing and obtaining a receipt for prospectus, and without an applicable exemption from the prospectus requirements of the Act, contrary to section 61(1) of the Act.

2.13 During the Relevant Period Henry did the following:

2.13.1 traded in the securities of Sota with individuals in British Columbia without an exemption from the registration requirements of the Act and without being registered to trade under the Act, contrary to section 34(1)(a) of the Act;

2.13.2 acted as an advisor in British Columbia without an exemption for the registration requirements of the Act and without being registered to advise under the Act, contrary to sections 34(1)(c) of the Act;

2.13.3 while engaging in investor relations, made statements to investors regarding when work would begin on the Lorna Judge Mine project, that he knew or ought reasonably to have known were misrepresentations, contrary to section 50(1)(d) of the Act; and

2.13.4 distributed the securities of Sota in British Columbia without filing and obtaining a receipt for prospectus, and without an applicable exemption from the registration and prospectus requirements of the Act, contrary to section 61(1) of the Act.

2.14 During the Relevant Period Sota did the following:

2.14.1 traded in the securities of Sota with individuals in British Columbia without an exemption from the registration requirements of the Act and without being registered to trade under the Act, contrary to section 34(1)(a) of the Act; and

2.14.2 distributed the securities of Sota in British Columbia without filing and obtaining a receipt for prospectus, and without an applicable exemption from the prospectus requirements of the Act, contrary to section 61(1) of the Act.

[para 3]
3. AND 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 of the Commission at 1200 - 865 Hornby Street, Vancouver, British Columbia, V6Z 2H4.

[para 4]
4. AND TAKE NOTICE that the Respondents are required to attend at the 12th Floor, 701 West Georgia Street, Vancouver, British Columbia, on Friday, February 16, 2001, at 11:00 a.m., if they wish to be heard before the Commission fixes a date for the Hearing;

[para 5]
5. AND TAKE NOTICE that the Commission may make determinations in this matter if the Respondents or their counsel do not appear at the Hearing.

[para 6]
DATED at Vancouver, British Columbia, on January 15, 2001.






Steve Wilson
Executive Director

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