Notices of Hearing & Temporary Orders
EDWARD JOHN CARTER, et. al. [Amended Sec. 161]
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BCSECCOM #:
2001 BCSECCOM 476
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Document Type:
Amended Sec. 161
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Published Date:
2001-05-08
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Effective Date:
2001-04-23
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Details:
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2001 BCSECCOM 476
IN THE MATTER OF THE SECURITIES ACT
R.S.B.C. 1996, c. 418
AND
IN THE MATTER OF EDWARD JOHN CARTER AND CARL L. LAZZELL
Amended Notice of Hearing Under Section 161
[para 1]
1. A hearing will be held to give Edward John Carter and Carl L. Lazzell an opportunity to be heard before the British Columbia Securities Commission determines whether it is in the public interest to make the following orders:
1.1 pursuant to section 161(1)(c) of the SecuritiesAct, 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 Carter or Lazzell;
1.2 pursuant to section 161(1)(b) of the Act, that Carter and Lazzell be prohibited from purchasing securities;
1.3 pursuant to section 161(1)(d) of the Act, that Carter and Lazzell each be prohibited from becoming or acting as a director or officer of any issuer;
1.4 pursuant to section 161(1)(d) of the Act, that Carter and Lazzell each be prohibited from engaging in investor relations activities;
1.5 pursuant to section 174 of the Act, that Carter and Lazzell jointly and severally pay prescribed fees or charges for the costs of or related to the Hearing; and
1.6 such further and other relief as the Commission considers appropriate in the circumstances.
[para 2]
2. The Commission will be asked to consider the following facts and allegations before making its determinations:
2.1 In 1987, Carter and Lazzell, among others, were charged under the Criminal Code of Canada (the “Charges”) with offences relating to the manipulation of the prices of shares trading on the Vancouver Stock Exchange (now the Canadian Venture Exchange (CDNX)) and fraud perpetrated on a mutual fund based in the United States.
2.2 On February 23, 1988, Lazzell was sentenced to 17 months in prison as a result of his conviction on the Charges.
2.3 On May 17, 1988, the British Columbia Supreme Court in a civil action relating to the Charges, found Carter, among others, liable for the losses of the mutual fund (the “Civil Judgment”).
2.4 As a result of the Charges and the Civil Judgment, on May 30, 1988, the Executive Director issued temporary orders (the “Temporary Orders”) under section 145(2) of the Securities Act, S.B.C. 1985, c. 83 (the “Former Act”), section 161 of the Act, that had the effect of precluding the Carter and Lazzell, among others, from being able to rely upon the exemptions in sections 30 to 32, 55, 58, 81 and 82 of the Former Act (sections 44 to 47, 74, 75, 98 or 99 of the Act).
2.5 The Executive Director also gave notice of a hearing (the “Notice of Hearing”) to be held on June 10, 1988, to give Carter and Lazzell an opportunity to be heard before the Commission determined whether further orders should be made under section 145(1) of the Former Act.
2.6 On June 9, 1988, the Commission adjourned the hearing generally, by consent, and extended the Temporary Orders until such time as a hearing was held and a decision rendered.
2.7 On October 19, 1990, Carter was convicted of the Charges and sentenced to a total of seven years in prison, plus payment of restitution of $2.35 million. Carter’s sentence was reduced on appeal in 1991, and he was paroled on October 28, 1993.
2.8 On November 2, 1999, the Commission revoked the Temporary Orders against all other respondents to the hearing except Carter and Lazzell.
[para 3]
3. Carter and Lazzell may be represented by counsel at the Hearing and may make representations and lead evidence. Carter and Lazzell are each requested to advise the Commission of their intention to attend the Hearing by contacting the Secretary to the Commission at P.O. Box 10142, Pacific Centre, 9th Floor, 701 West Georgia Street, Vancouver, BC, V7Y 1L2, or by telephone at (604) 899-6500.
[para 4]
4. Carter and Lazzell or their counsel are required to appear at the 12th Floor Hearing Room, 701 West Georgia Street, Vancouver, BC, at 9:30 a.m., on Friday, May 18, 2001, if they wish to be heard before the Commission sets a date for the Hearing.
[para 5]
5. Determinations may be made in this matter if Carter or Lazzell or their counsel do not appear at the Hearing.
[para 6]
DATED at Vancouver, British Columbia, on April 23, 2001.
Steve Wilson
Executive Director