News Release

Vancouver – The executive director of the British Columbia Securities Commission has issued a notice of hearing alleging that a mortgage broker illegally traded and distributed securities of a U.S.-based foreign exchange trading (Forex) company that became the subject of an Investor Alert and was eventually cease traded.

The notice of hearing says that, between June 2007 and April 2008, Don Maxwell, a B.C. resident and mortgage broker, was a finder who received compensation for referring investors to Gold-Quest International.

The notice also says that the BCSC issued an Investor Alert about Gold-Quest International on March 5, 2008, and cease traded the company on March 7, 2008.

The notice alleges that Maxwell:

• Provided promotional information about investing in Gold-Quest International to one of his mortgage clients, and assisted the investor with remortgaging her property and obtaining a line of credit in order to contribute to the investment.
• Assured the client that Gold-Quest International was still a good investment opportunity when she was making a third investment of US $120,000, even after he was aware of a BCSC Investor Alert and a news article about the alert.
• Illegally distributed securities to his client when he traded, without being registered, US $343,000 in Gold-Quest International securities for which there was no prospectus filed.

These allegations have not been proven. Counsel for the executive director will apply to set dates for a hearing into the allegations before a panel of commissioners on Jan. 26, 2011.

The B.C. Securities Commission is the independent provincial government agency responsible for regulating trading in securities within the province. You may view the notice of hearing  on our website, www.bcsc.bc.ca. If you have questions, contact Ken Gracey, media relations, 604-899-6577.