News Release
Securities Commission Issues Orders in Connection with Vancouver Boiler Room Securities Commission Issues Orders in Connection with Vancouver Boiler Room
-
Date:
1997-10-24 -
Number:
97/33
Released: October 22, 1997 Contact: Barbara Barry 660-4800 or (BC only) 1-800-373-6393
Vancouver -- The B.C. Securities Commission has imposed a $50,000 fine on Barry Sher Gill for operating a boiler room that solicited members of the public to purchase shares of Ambra Royalty, Inc., a company quoted on the NASDAQ OTC Bulletin Board. The Commission also prohibited Gill from trading securities, from being a director or officer of any company and from engaging in investor relations activities for 25 years.
Three other people involved in the Ambra boiler room - Adrienne Tuijthof, Gordon Charles Chappell and James Calvin Letendre - were fined amounts ranging from $25,000 to $30,000 and were prohibited from trading securities, from being directors or officers of any company and from engaging in investor relations activities for periods ranging from 12 to 15 years.
The Commission decision was issued on October 22, 1997, following a 21 day hearing that concluded in March of this year. In its decision, the Commission said:
These efforts appear to have been to some effect. Trading in Ambra shares almost doubled from 597,000 shares in January to 1,066,800 shares in February 1995 and continued to increase over the following months, peaking at 6,718,408 shares in May. During this period, ten brokerage accounts over which Gill had trading authority were net sellers of over 2,000,000 Ambra shares. Over 1,000,000 of these shares were sold during May, the month in which Ambra’s trading volume and share price was its highest. Of the $205,029.25 withdrawn from these accounts during this period, $124,689.01 was given to Ambra; the remaining $80,340.24 was retained by Gill.
Tuijthof was Gill’s trusted second in command in the running of the Ambra boiler room. She was a net seller of over 478,000 shares during the first six months of 1995, from which she derived $32,944. The Commission found that Tuijthof traded in securities without being registered, contrary to the Securities Act.
Chappell and Letendre were two of the employees who cold called members of the public to solicit purchases of Ambra shares. The Commission found that both Chappell and Letendre traded in securities without being registered, and that Chappell called people at their residences to trade in Ambra shares, all of which is contrary to the Securities Act.
The Commission found that the Ambra boiler room operated in blatant disregard of the registration requirements of the Act and said:
Copies of the Commission decision (46 pages) may be obtained in person at 1100 - 865 Hornby Street, Vancouver, British Columbia.