Notices of Hearing & Temporary Orders
JEAN-CLAUDE HAUCHECORNE [Sec. 161]
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BCSECCOM #:
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Document Type:
Sec. 161
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Published Date:
2000-02-25
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Effective Date:
2000-02-03
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Details:
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IN THE MATTER OF THE SECURITIES ACT
R.S.B.C. 1996, c. 418, as am. S.B.C. 1998, c. 42, s. 47; 1999, c. 20
AND
IN THE MATTER OF JEAN-CLAUDE HAUCHECORNE
Notice of Hearing Under Section 161
1. TAKE NOTICE that a hearing will be held at the 7th Floor Hearing Room, 865 Hornby Street, Vancouver, British Columbia (the “Hearing”), to give Jean-Claude Hauchecorne (the “Respondent”) an opportunity to be heard before the British Columbia Securities Commission (the “Commission”) considers whether it is in the public interest:
- 1.1 to make an order under section 161(1)(c) of the Securities Act, R.S.B.C. 1996, c. 418, as am. S.B.C. 1998, c. 42, s. 47; 1999, c. 20 (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 Respondent;
1.2 to make an order under section 161(1)(d) of the Act that the Respondent resign any position he holds as a director or officer of any issuer;
1.3 to make an order under section 161(1)(d) of the Act that the Respondent be prohibited from becoming or acting as a director or officer of any issuer;
1.4 to make an order under section 161(1)(d) of the Act that the Respondent is prohibited from engaging in investor relations activities;
1.5 to make an order under section 162 of the Act that the Respondent pay an administrative penalty;
1.6 to make an order under section 174 of the Act that the Respondent pay the prescribed fees or charges for the costs of or related to the Hearing; and
1.7 to make any other order as may be appropriate under the circumstances.
- 2.1 The Respondent is a resident of Alberta and until June 2, 1999, was registered pursuant to the Act as a trading partner/director/officer restricted to securities with Pacific International Securities Inc. (“Pacific International”). The Respondent was first a registrant on February 25, 1987.
2.2 From the period February, 1995, until May, 1996, (the “Relevant Period”) while employed by Yorkton Securities Inc. (“Yorkton”) and subsequently by Pacific International, the Respondent trading accounts in the name of “First Nassau Ltd.”, “Ubiquity Holdings Limited”, “Louis Metzer” and “Roddy DiPrimo S.A.” (the “Accounts”).
2.3 When he opened the Accounts, the Respondent failed to make the necessary enquiries and perform the required due diligence to learn the essential facts relative to the clients, contrary to section 48 of the Securities Rules, B.C. Reg. 194/97; as amended by B.C. Reg. 18/98 ( the “Rules”). In particular the Respondent:
- 2.3.1 failed to ascertain the beneficial owner of the Accounts or the parties who were financially responsible for the Accounts, contrary to Vancouver Stock Exchange Rule (“Exchange Rule”) F.1.04 and Vancouver Stock Exchange By-Law (“Exchange By-Law”) 5.01(2);
2.3.2 failed to make inquiries concerning the identity of those persons authorized to make trades in the corporate accounts;
2.3.3 failed to make any inquiries about the identity and financial reputation of the beneficial owners and the directors of the corporate clients; and
2.3.4 failed to use due diligence to learn the essential facts relative to the Accounts, contrary Exchange Rule F.1.01 and Exchange By-Law 5.01(2).
2.4.1 on or about April 10, 1996, the Respondent effected or facilitated the transfer of U.S. $500,000.00 from the Ubiquity Holdings Limited Account (the “UB Account”), without the knowledge or authority of the owner of the UB Account, contrary to Exchange By-Law 5.01(2);
2.4.2 on or about April 12, 1996, the Respondent effected or facilitated the transfer of U.S. $500,000.00 from the UB Account, without the knowledge or authority of the owner of the UB Account, contrary to Exchange By-Law 5.01(2); and
2.4.3 on or about April 18, 1996, the Respondent effected or facilitated the transfer of U.S. $747,702.06 from the UB Account, without the knowledge or authority of the owner of the UB Account, contrary to Exchange By-Law 5.01(2).
2.5 The Respondent knew or ought to have known that the documents maintained at Pacific International’s head office with respect to the beneficial ownership of the Accounts, did not comply with section 44 of the Rules, Exchange Rule F. 1.01 and Exchange By-law 5.01(2) which required Pacific International to establish and apply written prudent business procedures for dealing with clients.
2.6 As a registrant the Respondent had a duty in his capacity as gatekeeper in the financial industry to refuse to engage in transactions which would tend to bring the integrity of the capital markets into disrepute.
2.7 The Respondent failed to comply with the Exchange requirements and further engaged in conduct which created a conflict with his duties and responsibilities to Pacific International, contrary to VSE Rule F 2.08 and F 2.10.
4. The Respondent is required to attend at the 7th Floor Hearing Room, 865 Hornby Street, Vancouver, British Columbia, on February 25, 2000, at 10:00 a.m., if he wishes to be heard before the Commission sets a date for the Hearing.
5. Determinations may be made in this matter if the Respondent or his counsel do not appear at the Hearing.
DATED at Vancouver, British Columbia, on February 3, 2000.
Steve Wilson
Executive Director