Notices of Hearing & Temporary Orders

RANDALL KANE GARROD [Notice]

BCSECCOM #:
2000 BCSECCOM 276
Document Type:
Notice
Published Date:
2000-11-22
Effective Date:
2000-11-14
Details:


2000 BCSECCOM 276


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

AND

IN THE MATTER OF RANDALL KANE GARROD

Notice of Hearing Under Section 161
[para 1]
1. TAKE NOTICE that a hearing will be held (the “Hearing”) to give Randall Kane Garrod (“Garrod”) 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 Garrod;

1.2 to make an order under section 161(1)(b) of the Act that Garrod cease trading in any securities or exchange contracts;

1.3 to make an order under section 161(1)(d) of the Act that Garrod 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 Garrod 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 Garrod be prohibited from engaging in any investor relations activities;

1.6 to make an order under section 161(1)(f) of the Act that Garrod be subject to restrictions in any application for registration under the Act;

1.7 to make an order under section 162 of the Act that Garrod pay an administrative penalty;

1.8 to make an order under section 174 of the Act that Garrod 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.

[para 2]
2. AND TAKE NOTICE that the Commission will be asked to consider the following facts and allegations in making its determination:

2.1 Garrod was a resident of British Columbia at all material times.

2.2 Garrod was registered as a mutual fund salesperson under the Act from February 8, 1996 to December 3, 1999. During that time, Garrod was employed by PFSL Investments Canada Ltd. (“PFSL”).


2.3 From October 8, 1996 to the time he was terminated from PFSL in November, 1999, Garrod was the registered representative assigned to the account of a client of PFSL's (The "Client").

2.4 The Client's investment portfolio included a Life Income Fund (“LIF”) from McKenzie Financial Corporation (“McKenzie”).

2.5 McKenzie issued a cheque in the amount of $655.00 made payable to the Client for his 1999 McKenzie LIF payout.

2.6 The cheque was sent to Garrod who was the PFSL representative responsible for the Client’s account, for forwarding to the Client.

2.7 Garrod received the cheque but did not forward it to the Client. Garrod misappropriated the cheque for his own use and benefit.

2.8 Staff of McKenzie referred the matter to the Royal Canadian Mounted Police (“RCMP”).

2.9 On June 5, 2000 the following criminal charges were laid by the RCMP against Garrod, alleging that Garrod:

2.9.1 on or about May 20, 1999, at or near Surrey, British Columbia, did commit an offence of using a forged document, contrary to section 368(1)(a) of the Criminal Code, R.S.C. 1985, Chap. C-46 (the “Criminal Code”); and

2.9.2 on or about January 15, 1999 at or near Surrey, British Columbia, did commit an offence of theft of $5,000, or under, contrary to section 334(b) of the Criminal Code.

2.10 On June 5, 2000, a Warrant for Arrest was issued against Garrod by a Justice of the Peace in and for British Columbia, based on the criminal charges. The Warrant for Arrest remains outstanding as at the date of this Notice of Hearing as the RCMP has been unable to locate Garrod.

2.11 The conduct of Garrod, as alleged, amounts to a transaction or series of transactions in furtherance of a trade, when Garrod knew or ought reasonably to have known that his conduct would perpetrate a fraud on the Client contrary to section 57 the Act and the public interest.

2.12 Garrod abused his position as the registered salesperson of the Client. Garrod, a registrant, failed to deal fairly, honestly and in good faith with the Client contrary to section 14 of the Securities Rules, B.C. Reg. 194/97 (the “Rules”) and the public interest.

[para 3]
3. AND TAKE NOTICE that Garrod may be represented by counsel at the Hearing, and make representations and lead evidence. Garrod is requested to advise the Commission of his intention to attend the Hearing by informing the Secretary to the Commission at the 1200 – 865 Hornby Street, Vancouver, BC, V6Z 2H4, phone: (604) 899-6500.

[para 4]
4. AND TAKE NOTICE that Garrod or his counsel are required to attend at the 12th Floor Hearing Room, 701 West Georgia Street, Vancouver, British Columbia, on December 13, 2000, at 9:00 a.m. if he wishes 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 Garrod or his counsel do not appear at the Hearing.

[para 6]
DATED at Vancouver, British Columbia, on November 14, 2000.






Steve Wilson
Executive Director
©2024 British Columbia Securities Commission