News Release

Vancouver – The British Columbia Securities Commission has banned a former mutual funds salesman for his part in convincing investors to put $855,000 into “risky, illiquid and speculative” investments.

Mark Webster Vaughan Foster, of Victoria, agreed to a 12-year-ban from the securities markets and must pay $35,000 to the commission for promoting unsuitable investments to unsophisticated investors; distributing securities without filing a prospectus; not disclosing conflicts of interests; and making misrepresentations to investors.

Beginning in 1996, Foster recommended that clients invest in securities of various companies including Specialized Surgical Services Inc. -- a company in which he served as director -- for a proposed health and medical center in Coquitlam, B.C. He also advised clients to invest in Foster First Financial Corp., a securities dealer that he owned.

In a March 2002 commission hearing notice, staff noted that the securities of Specialized Surgical were “risky, illiquid and speculative” and as a result were unsuitable investments for Foster’s clients. Foster did not advise investors that the securities were unsuitable for them contrary to his responsibilities as a registrant.

Foster sold shares in Specialized Surgical under exemptions that required clients to be experienced or so-called sophisticated investors. (Sophisticated investors were required to have a minimum net worth of $400,000 and enough financial experience and acumen to make their own assessment of the risks associated with any investment.) Foster admitted that many of his clients were not sophisticated investors.

Foster admitted in the settlement that in some cases, he persuaded investors to take monies they had in relatively secure, liquid financial instruments -- T-bills and money-market funds -- to invest in Specialized Surgical.

In touting the investments in Specialized Surgical, Foster failed to inform investors that he was in conflict of interest as his own financial success was dependent upon the sale and promotion of the company’s securities.

The proposed Coquitlam clinic did not open for business in the third quarter of 1998 as promised and it was never opened.

Foster was among a slate of respondents initially named in the March 2002 hearing notice who have settled with BCSC staff before the matter reached a commission hearing. The following four individuals – all directors of Specialized Surgical -- have also agreed to be banned from the securities markets:
· George Gow, two years;
· Wayne A. Hansen, eight years;
· Peter Hoogewerf, two years;
· Robert Murray, two years.

A commission hearing was started this week on related allegations against Specialized Surgical; the company’s president and majority shareholder, James Swanney; and David Steinart, a company director.

The B.C. Securities Commission is the independent provincial government agency responsible for regulating trading in securities and exchange contracts within the province. Copies of the settlement agreements can be viewed in the documents database of the commission’s website www.bcsc.bc.ca or by contacting Andrew Poon, Media Relations, 604-899-6880.