Notices of Hearing & Temporary Orders
Quest Capital Enterprises, Ltd., et.al. [Amended Temp. Order & Notice]
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BCSECCOM #:
2003 BCSECCOM 63
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Document Type:
Amended Temp. Order & Notice
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Published Date:
2003-01-22
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Effective Date:
2003-01-20
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Details:
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2003 BCSECCOM 63
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2003 BCSECCOM 63
Amended Temporary Order and Notice of Hearing
Quest Capital Enterprises, Ltd., Capital Management International, Financial Trading Group International, Dwayne A. Daleyand Kevin R. Moran
Section 161 of the Securities Act, RSBC 1996, c. 418
Quest Capital Enterprises, Ltd., Capital Management International, Financial Trading Group International, Dwayne A. Daleyand Kevin R. Moran
Section 161 of the Securities Act, RSBC 1996, c. 418
¶ 1 A hearing (the Hearing) will be held to give Quest Capital Enterprises Ltd. (Quest), Capital Management International (Capital), Financial Trading Group International (Financial), Dwayne A. Daley (Daley) and Kevin R. Moran (Moran), (collectively the Respondents), an opportunity to be heard before the British Columbia Securities Commission considers whether it is in the public interest to make the following orders:
1. under section 161(1)(b) of the Securities Act, RSBC 1996, c. 418, that the Respondents, their employees, and/or agents cease trading in any securities or exchange contracts;
2. under section 161(1)(c) of the Act, that any or all of the exemptions described in sections 44 to 47, 74, 75, 98 or 99, do not apply to the Respondents, their employees, and/or agents;
3. under section 162 of the Act, that the Respondents each pay an administrative penalty;
4. under section 174 of the Act, that the Respondents each pay prescribed fees or charges for the costs of, or related to, the Hearing; and
5. to make any other orders as may be appropriate in the circumstances.
¶ 2 The Commission will be asked to consider the following facts and allegations in making its determinations:
1. The Respondents are not residents of British Columbia. Quest was incorporated in the Bahamas on July 9, 1997.
2. Each of Quest, and Financial purport to be engaged in the business of foreign currency trading on behalf of clients (Investors).
3. Investors remit their investment funds to Capital for investment by Quest and Financial.
4. Daley is the president of Quest.
5. Moran is listed as the Associate Vice-President & General Manager of Financial.
6. None of the Respondents have ever been registered in any capacity under the Act.
Summary of Activities
7. During the period from at least March of 2002 forward (the Relevant Period) Quest and Financial, by way of the Quest website and through newspaper advertisements, purported to trade in “off-exchange foreign currency option contracts” for Investors resident in BC and elsewhere. Quest and Financial represent to be able to turn $5,000 into $15,000 in 30 days (the Quest Program).
8. Investors in the Quest Program are required to send their funds by bank draft or wire transfer to Capital.
9. Residents of British Columbia and elsewhere have been solicited by Quest and Financial.
10. The Respondents have refused or neglected to cease their solicitation activities.
Breaches of the Act
During the Relevant Period, Quest, Financial and Capital did the following:
(a) traded in securities for individuals in British Columbia without being registered in accordance with the requirements of the Act, and without an exemption from the registration requirements of the Act, contrary to section 34(1)(a) of the Act;
(b) acted as an advisor to individuals in British Columbia without being registered in accordance with the requirements of the Act, and without an exemption from the registration requirements of the Act, contrary to section 34(1)(c) of the Act;
(c) placed advertisements in printed news media in order to obtain investor interest in its products and services; and
(d) received funds from a resident of British Columbia, with the understanding that the funds were used for investment purposes.
Public Interest
It would be contrary to the public interest, as set out in section 161 of the Act, to allow the Respondents to continue to operate in the capital markets of British Columbia.
Temporary Order
¶ 3 The Executive Director considers the length of time to hold a hearing under section 161(1) of the Act could be prejudicial to the public interest.
¶ 4 The Executive Director, considering that it would be in the public interest to do so, orders under section 161(2) of the Act (the Temporary Order) that:
1. under section 161(1)(b) of the Act, that the Respondents cease trading in any securities or exchange contracts;
under section 161(1)(c) of the Act, that any or all of the exemptions described in sections 44 to 47, 74, 75, 98 or 99, do not apply to the Respondents;
for a period expiring on January 21, 2003.
¶ 5 The Hearing will be held at the 12th Floor Hearing Room, 701 West Georgia Street, Vancouver, BC, on Tuesday, January 21, 2003 at 9:00 am.
¶ 6 At the Hearing the staff of the Commission will bring the following applications:
2. that the matter be adjourned for 90 days to permit the conclusion of the investigation in this matter; and
that the Temporary Order be extended until such time as the Hearing is completed and a decision rendered.
¶ 7 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 by contacting the Commission Secretary at PO Box 10142, Pacific Centre, 5th Floor, 701 West Georgia Street, Vancouver, BC, V7Y 1L2, phone: (604) 899-6500; email: commsec@bcsc.bc.ca
¶ 8 Determinations may be made in this matter if the Respondents or their counsel do not appear at the Hearing.
¶ 9 January 20, 2003
“Stephen J. Wilson”
¶ 10 Stephen J. Wilson
Executive Director