Settlements
Lawrence Gilbert Ryckman, et al. [Sec. 144]
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BCSECCOM #:
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Document Type:
Sec. 144
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Published Date:
1996-09-20
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Effective Date:
1996-09-13
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Details:
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IN THE MATTER OF The Securities Act, S.B.C. 1985, c. 83
AND IN THE MATTER OF Lawrence Gilbert Ryckman and Ryckman
Financial Corporation
Order Under Section 144
D.E. Holley
September 13, 1996
ORDER:-- WHEREAS an Agreed Statement of Facts and Undertaking was executed by Lawrence Gilbert Ryckman, Ryckman Financial Corporation (collectively, the "Respondents") and the Executive Director, a copy of which is attached hereto as Schedule "A";
 | NOW THEREFORE the Executive Director, considering that it would be in the public interest to do so, orders, BY CONSENT, that: | |
| 1. | | under section 144(1)(c) of the Securities Act, S.B.C. 1985, c. 83, the exemptions described in sections 30 to 32.1, 55, 58, 80 and 81 of the Act do not apply to the Respondents for a period of 18 years from the date of this Order; and | |
| 2. | | under section 144(1)(d) of the Act, Ryckman be prohibited from becoming or acting as a director or officer of any reporting issuer or of any issuer that provides management, administrative, promotional or consulting services to a reporting issuer, for a period of 18 years from the date of this Order; | |
D.E. HOLLEY, Executive Director
Schedule "A"
IN THE MATTER OF THE SECURITIES ACT
S.B.C. 1985, c. 83
S.B.C. 1985, c. 83
AND
IN THE MATTER OF LAWRENCE GILBERT RYCKMAN AND RYCKMAN FINANCIAL CORPORATION
Agreed Statement of Facts and Undertaking
The following agreement has been reached between Lawrence Gilbert Ryckman, Ryckman Financial Corporation (collectively, the "Respondents") and the Executive Director:
| 1. | | As the basis for the orders set out in paragraph 2 of this agreement, the Respondents acknowledge the following facts as correct: | |
| (a) | | on January 18, 1996, the Alberta Securities Commission announced a decision (the "Decision") with respect to allegations of stock market manipulations and other acts contrary to the Securities Act, S.A. 1981, c. S-6.1, as amended (the "Alberta Act"), by Ryckman, Ryckman Financial Corporation, RNR Investment Corporation and American Artists Ltd. (collectively, the "Alberta Respondents"). At the hearing before the Alberta Securities Commission Ryckman applied for an adjournment to call evidence in response to the allegations, which application was denied, and thereafter called no evidence; | |
| (b) | | the Decision concluded that the Alberta Respondents committed numerous and serious violations of the Alberta Act in trading and related activities of Westgroup Corporation Inc. including 87 wash trades from 34 brokerage accounts controlled by Ryckman in a manipulation scheme described as "deliberate, pervasive, well planned and contrived"; | |
| (c) | | the Decision also concluded that Ryckman breached an undertaking given to the Board of the Alberta Securities Commission not to trade in securities of Westgroup for a six month period, and that Ryckman had given a guarantee which constituted an undertaking as to the future price of Westgroup shares contrary to the Alberta Act; | |
| (d) | | the sanctions imposed by the Alberta Securities Commission upon the Alberta Respondents included a prohibition on Ryckman from becoming or acting as a director or officer of any issuer for 18 years and that all of the Alberta Respondents cease trading in all securities for a period of 18 years; | |
| (e) | | the decision of the Alberta Securities Commission was varied pursuant to a Settlement Agreement and Variation Order both dated February 16, 1996. In that Settlement Agreement, Ryckman continued to deny the allegations; | |
| (f) | | the appeal of the Decision to the Alberta Court of Appeal was abandoned by the Respondents on February 16, 1996; | |
| (g) | | Ryckman has an extensive and recent connection with reporting issuers in British Columbia, having been a director of Archer Communications Inc., formerly Archer International Developments Ltd., from June 1988 to January 1992, and a director of Aabbax International Financial Corporation from February 1993 to October 1995; and | |
| (h) | | Ryckman Financial Corporation is extra-provincially registered in British Columbia under the Company Act, R.S.B.C. 1979, c. 59. | |
| 2. | | The Respondents consent to an order of the Executive Director (the "Order"): | |
| (a) | | under section 144(1)(c) of the Securities Act, S.B.C. 1985, c. 83, that the exemptions described in sections 30 to 32.1, 55, 58, 80 and 81 of the Act do not apply to the Respondents for a period of 18 years from the date of the Order; and | |
| (b) | | under section 144(1)(d) of the Act, that Ryckman be prohibited from becoming or acting as a director or officer of any reporting issuer or of any issuer that provides management, administrative, promotional or consulting services to a reporting issuer, for a period of 18 years from the date of the Order; | |
| provided that the Respondents may apply to the British Columbia Securities Commission for an order revoking or varying this order in accordance with any revocation or variation of the Alberta Securities Commission order or otherwise if in the Commission's opinion the order applied for would not be prejudicial to the public interest. | |
| 3. | | The Respondents waive any right they may have, under the Act, or otherwise to a hearing, hearing and review, judicial review or appeal related to, in connection with or incidental to this agreement and the related Order. | |
| Ryckman Financial Corporation | |
| Per: "Lawrence Ryckman" Authorized Signatory | |
| "Kelly Turner | ) | | |
| Witness Signature | ) | | |
| KELLY TURNER | ) | | |
| Witness Name (please print) | ) | "Lawrence Ryckman" | |
| 2516 1st Ave. N.W. | ) | Lawrence Gilbert Ryckman | |
| Calgary, Alberta | ) | | |
| Address | ) | | |
| Dean E. Holley Executive Director | |