BCSC

Settlements

Lone Jack Resources Ltd., et al. [Sec. 145 & 145.1 & Agreed Stmt]]

BCSECCOM #:	Document Type: Sec. 145 & 145.1 & Agreed Stmt]
Published Date: 1989-03-31	Effective Date: 1989-03-17
Details:

IN THE MATTER OF The Securities Act, S.B.C. 1985, c. 83
AND IN THE MATTER OF Lone Jack Resources Ltd.
AND IN THE MATTER OF Zeljko Mileta, Paul J.Nicholls
Rudolph Riepe, Ruth Management Ltd.,
Paul J. Nicholls & Co. Ltd., Harrison Industries Ltd.
and Lions Gate Insurance Consultants Ltd.

Section 145 and Section 145.1 Orders

N. de Gelder

March 17, 1989

STATUTES CITED:

Securities Act, S.B.C. 1985, c. 83, ss. 30, 31, 32, 55, 58, 81, 82, 145, 145.1.

ORDER:-- WHEREAS an Agreed Statement of Facts and Undertaking was executed by Rudolph Riepe ("Riepe") and the Superintendent of Brokers (the "Superintendent") a copy of which is attached hereto as Schedule "A";

NOW THEREFORE the Superintendent, considering that it would be in the public interest to do so, orders:

1.		that pursuant to Section 145 of the Securities Act S.B.C. 1985, c. 83, as amended (the "Act") the trading exemptions contained in Section 30 to 32, 55, 58, 81 or 82 of the Act do not apply to Riepe for a period commencing March 13, 1989 up to and including March 12, 1992;
2.		that notwithstanding the removal of the exemptions set forth in paragraph 1 of this Order, Riepe may rely upon those exemptions with respect to the sale of any securities of Performance Minerals of Canada Ltd ("Performance") (formerly Lone Jack Resources Ltd.) owned directly by him as of the date of this Order for a period of 60 days from the date of this Order; and
3.		that pursuant to Section 145.1 of the Act, Riepe is prohibited from becoming or acting as a director or officer of any reporting issuer for a period commencing March 13, 1989 up to and including March 12, 1992, except that Riepe may continue to act as an officer and director of Performance.

N. de GELDER
Superintendent of Brokers

Schedule "A"

IN THE MATTER OF The Securities Act, S.B.C. 1985, c. 83,
as amended
AND IN THE MATTER OF Lone Jack Resources Ltd.
AND IN THE MATTER OF Zeljko Mileta, Paul J.Nicholls
Rudolph Riepe, Ruth Management Ltd.,
Paul J. Nicholls & Co. Ltd., Harrison Industries Ltd.
and Lions Gate Insurance Consultants Ltd.

Agreed Statement of Facts and Undertakings1360

The following agreement has been reached between Zeljko Mileta ("Mileta"), Paul J. Nicholls ("Nicholls") Rudolph Riepe ("Riepe"), Ruth Management Ltd. ("Ruth"), Paul J. Nicholls & Co. Ltd. ("Paul Co."), Harrison Industries Ltd. ("Harrison") and Lions Gate Insurance Consultants Ltd. ("Lions Gate") (all of whom are collectively known as the "Respondents") and the Superintendent of Brokers (the "Superintendent"):

As the basis for orders made pursuant to sections 145 and 145.1 of the Securities Act S.B.C. 1985 c. 83 as amended (the "Act") withdrawing the statutory exemptions of the Respondents and prohibiting Mileta, Nicholls and Riepe from becoming or acting as directors or officers of any reporting issuer, the Respondents acknowledge the following facts as correct:

(a)		Mileta, Nicholls and Riepe were shareholders of Lone Jack Resources Ltd. ("Lone Jack") during the months of July, August and September 1986;
(b)		the securities of Lone Jack (the "Securities") were, at all material times, listed for trading on the Vancouver Stock Exchange and Mileta and Riepe were officers and directors of Lone Jack and Nicholls was an administrative consultant for Lone Jack;
(c)		Mileta was, at all material times, a principal of Lions Gate;
(d)		Nicholls was, at all material times, a principal of Harrison and Paul Co.;
(e)		Riepe was, at all material times, a principal of Ruth;
(f)		Constance Riepe a.k.a. Connie Riepe, a.k.a. constance Vodden was at all material times, and still is Riepe's wife;
(g)		Mato Mileta, Molly Mileta, Alan Mileta, Susan Mileta and Rebecca Mileta were, at all material times, related to Mileta;
(h)		Mileta had, at all material times, trading authority for or control over various accounts of Mileta, Grandex Resources Ltd., Harrison, Lions Gate, Mato Mileta, Molly Mileta, Susan Mileta, Alan Mileta, Rebecca Mileta, Lee Prlia and Ruth at various brokerage houses;
(i)		Nicholls had, at all material times, trading authority for or control over various accounts of Nicholls, Harrison, Gregory Nicholls, Paul Co., Connie Riepe, Constance Riepe, Rudolph Riepe, Constance Vodden and Ruth at various brokerage houses;
(j)		Riepe had, at all material times, trading authority for or control over various accounts of Riepe, Connie Riepe, Constance Riepe, Constance Vodden and some of the accounts of Ruth at various brokerage houses; and
(k)		During the months of July and August, 1986 Mileta and Nicholls, with the acquiesence of or, in some cases, the assistance of Riepe, directly or indirectly traded in the Securities which resulted in a misleading appearance of trading activity in or an artificial price for the Securities and the particulars of such trades included, but were not limited to the following

(i)		trades occurred between accounts which were owned or controlled by or were acting in concert with Mileta, Nicholls and Riepe or some or any of them so that there was no real change in beneficial ownership of the Securities in such trades,
(ii)		trades involving orders entered for the purchase or sale of the Securities through the facilities of the Vancouver Stock Exchange, when Mileta, Nicholls and Riepe or some or any of them knew or ought to have known that orders for the Securities had been entered on the other side of the market at substantially the same time and at substantially the same price,
(iii)		trades of sufficient numbers of the Securities through a large number of accounts which were owned or controlled by or acting in concert with Mileta, Nicholls and Riepe or some or any of them so as to effectively dominate the public market place which had the effect of artificially maintaining the market price of the Securities,
(iv)		trades between accounts which were owned or controlled by or acting in concert with Mileta, Nicholls and Riepe or some or any of them for the purpose of avoiding proper settlement of such trades, and
(v)		arranging, on at least one occasion, for several different brokerage firms to post a bid on the Securities at the same time and at the same price on behalf of accounts owned or controlled by or acting in concert with Mileta, Nicholls and Riepe or some or any of them.

2.		All of the Respondents except Riepe hereby consent to an order for the Superintendent pursuant to sections 145 and 145.1 of the Act in the form of order attached hereto as Schedule "A" (the "Order").
3.		Riepe hereby consents to an order of the Superintendent pursuant to sections 145 and 145.1 of the Act in the form of order attached hereto as Schedule "B" (the "Riepe Order").
4.		Each of the Respondents waives his or its right to a hearing and review by the British Columbia Securities Commission pursuant to section 149 of the Act with respect to the Order and the Riepe Order respectively.
5.		Mileta hereby agrees to pay to or to the order of Her Majesty the Queen in Right of the Province of British Columbia represented by the Minister of Finance the sum of $7,500.00.
6.		Nicholls hereby agrees to pay to or to the order of Her Majesty the Queen in Right of the Province of British Columbia represented by the Minister of Finance the sum of $7,500.00.
7.		Riepe hereby agrees to pay to or to the order of Her Majesty the Queen in Right of the Province of British Columbia represented by the Minister of Finance the sum of $5,000.00.