News Release

Vancouver -- The British Columbia Securities Commission has banned a former mutual fund salesman from the securities markets for 30 years and ordered him to pay a $200,000 penalty.

Carey Brian Dennis, who lived in Salmon Arm, B.C., is also prohibited from being a director or officer of any issuer and from engaging in investor relations activities for 30 years.

The sanctions against Dennis follow a Jan. 28, 2005 commission decision that found Dennis committed fraud and failed to deal fairly, honestly, and in good faith with clients.

Dennis was registered as a mutual fund salesman from September 1993 to July 1997. He worked at Mutual Investco Inc., a subsidiary of Mutual Life (later known as Clarica Life Assurance Company). From 1993 to 1997, Dennis intentionally misled seven B.C. clients about what he had done with their investments. Dennis told the clients he invested their money in a mortgage or other mutual fund with Mutual Life, when in fact, he used their money to invest in mortgages or a mortgage pool in his own name or for other business or personal purposes. In total, the clients lost close to $250,000.

On Oct. 10, 2003, the B.C. Supreme Court found Dennis guilty of fraud and theft, later sentenced him to two years and three months in prison and ordered him to pay back his clients.

“Dennis’ conduct was very serious and highly prejudicial to the public interest. He badly hurt seven vulnerable clients and their families and he enriched himself through fraud,” said the panel in issuing the sanctions.

“The amounts of money he took from his clients were very significant to them. He took advantage of his trusted position as financial advisor and his good reputation in the community over a period of three and half years.”

The panel said that Dennis did not cooperate with the commission, and had shown no remorse, and there was no evidence that he had paid back any of his victims.

 “Dennis poses a significant risk to investors and markets in British Columbia. We must deter him, and others, from similar conduct. He is clearly unfit to hold a position of trust as a registrant or a corporate director and officer,” said the panel. “Dennis is now in his fifties. We consider it to be in the public interest to remove Dennis from our markets for a long period and to impose on him a substantial administrative penalty.”

Dennis must also pay over $12,000 in costs related to the hearing.

The B.C. Securities Commission is the independent provincial government agency responsible for regulating trading in securities within the province. You may view the decision on our website www.bcsc.bc.ca by typing in the search box, Carey Brian Dennis or 2005 BCSECCOM 388. If you have questions, contact Andrew Poon, Media Relations, 604-899-6880.