News Release

Released: March 5, 1992  Contact: Ron Messent  660-4800

The British Columbia Securities Commission today released a ruling on an application by Commission staff to set down a hearing into alleged improper insider trading in the shares of Doman Industries Ltd. by Russell J. Bennett, William R. Bennett and Harbanse S. Doman.

The allegations against the respondents William and Russell Bennett and Herb Doman relate to purchases and sales of Doman shares between October 1987 and November 4, 1988. In the hearing, the Commission will consider whether it is in the public interest to make orders against the respondents under section 144 of the Securities Act removing their exemptions under the Act and prohibiting them from being directors of any issuers.

In 1989 the respondents were charged with offences under section 138 of the Securities Act related to the same conduct. They were found not guilty of those offences after a trial in Provincial Court. When the charges were laid, the Superintendent of Brokers issued a notice of hearing with respect to the Bennetts and made temporary orders removing their exemptions. The hearing was subsequently adjourned generally. The temporary orders were extended and remain in effect.

In October 1990, the Superintendent amended the notice of hearing, setting down the hearing for February 1991, further particularizing the allegations and adding Doman as a respondent. The respondents then sought orders from the Supreme Court of British Columbia prohibiting the Commission from holding the hearing. The Commission adjourned the hearing until June 1991.

In May 1991, Mr. Justice Melnick of the Supreme Court dismissed the respondents' application. The respondents appealed to the British Columbia Court of Appeal. The Commission then adjourned the hearing pending the appeal.

The appeal was set down for June 1992 but was later deferred to October 1992 after the respondents failed to file factums by the date set by the Court. Commission staff then applied to the Commission to have the hearing held during the June dates that had been reserved for the appeal.

Counsel for the respondents opposed the application on several grounds and advised that they no longer had the June dates available.

The Commission ruled that the hearing should be set down to proceed expeditiously.

The Commission directed that counsel arrange dates for the hearing to conclude before the end of August 1992, failing which a hearing will be convened on March 13, 1992, to set dates and to consider whether it is necessary and in the public interest to make further temporary orders denying certain trading exemptions to the respondents and prohibiting them from being directors or officers of issuers.

Copies of the Commission's ruling (21 pages) may be obtained in person at 1100 - 865 Hornby Street, Vancouver, British Columbia.