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  • Securities Commission Continues Ban On Eron Mortgage Corporation, Capital Productions Inc., Brian Slobogian And Frank Biller
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News Release

Securities Commission Continues Ban On Eron Mortgage Corporation, Capital Productions Inc., Brian Slobogian And Frank Biller

  • Date:

    1997-12-05

  • Number:

    97/38

Released: November 28, 1997  Contact: Barbara Barry  660-4800 or (BC only) 1-800-373-6393

The British Columbia Securities Commission announced that it has extended temporary orders against Eron Mortgage Corporation, Capital Productions Inc., Brian Slobogian and Frank Biller.

The orders, issued under the Securities Act, remove the trading rights of each of the Respondents and prohibit Slobogian and Biller from acting as directors or officers of any company. Biller had opposed Commission staff’s application to have the temporary orders against him extended.

The orders are extended until Commission staff conclude their investigation into Eron’s and Capital’s raising of funds from British Columbia residents for investment in their mortgage-related business.

The Commission, in concluding that it was necessary to extend the temporary orders and adjourn the hearing, stated that:

Slobogian as the director and president of Eron and Capital, and Biller as a senior officer of the companies, were responsible for ensuring that Eron and Capital complied with the Act. This they failed to do. The books and records of Eron, Capital and the related companies are in complete disarray. The finances and affairs of the Respondents and related companies appear to be completely intertwined. There also appear to be many questionable transactions…

…it is the Respondents’ abysmal record keeping that is the cause, in large part, of the expected lengthy investigation and the Commission staff’s inability to proceed with a hearing within the 15 day period…
[to] enable staff to present a properly developed case, the receiver and Commission staff require time to sort out the records, business and affairs of the Respondents. During this period the temporary orders should remain in effect. We are of the view that there is more than sufficient evidence to justify our extension of the temporary orders in the public interest against all of the Respondents.

The hearing before the Commission has been adjourned to March 31, 1998.

The British Columbia Securities Commission is the independent provincial government agency responsible for regulation of securities and exchange contracts in the province.

Copies of the Commission decision (12 pages) may be obtained in person at 1100 - 865 Hornby Street, Vancouver, British Columbia.