News Release

Released: 04/02/98  Contact: Lang Evans, 899-6620 or Steve Plummer, 899-6602 or
(BC only)1-800-373-6393

Vancouver - Acting upon inquiries from European investors received March 20, 1998, staff of the British Columbia Securities Commission commenced an investigation into the activities of Turner Phillips.

Staff of the Commission identified a website operated by Turner Phillips. The website stated that Turner Phillips was a "full service investment dealer" and member of the Toronto Stock Exchange, the Alberta Stock Exchange, the Vancouver Stock Exchange, the National Association of Securities Dealers Automated Quotation System (NASDAQ), the Investment Dealers Association and the Canadian Investor Protection Fund (CIPF). The investigation by staff of the Commission determined that Turner Phillips is not registered under the Securities Act in any capacity, nor is it a member of any of the regulatory organizations stated above.

The Turner Phillips website appears to have been pirated from a website operated by a properly registered investment dealer. The Turner Phillips website listed an address in Vancouver as its head office and identified, as its sales and trading team, Steven Phillips, Mark Stone, Jack Edwards, Jeffrey Miller and Richard Stewart, none of whom are registered to trade or advise in securities in British Columbia. Staff of the Commission has determined that Turner Phillips has no physical presence at the Vancouver office but that it is simply a mail drop and telephone answering service with forwarding relays to other locations in the United States and Canada.

The operations of Turner Phillips appear to have been a part of a two-tiered fraud perpetrated upon investors. The scheme consists of an initial sale of suspect securities to investors. After the initial purchase, investors are then re-approached by a firm such as Turner Phillips and are offered the opportunity to sell their original securities for a significant profit. The catch is that in order to sell the securities, the investor must post with Turner Phillips an advance cash fee as an insurance bond. Investors caught in this scheme will usually end up losing their original investment and the advance cash fee as the re-purchase offer is not concluded. This type of scheme has been recently conducted on an international scale resulting in the loss of millions of dollars to affected investors worldwide.

Staff of the Commission has issued a Cease Trade Orders against Turner Phillips and its sales staff and continues to co-operate and assist in the further investigation of these parties by law enforcement and regulatory agencies in the United States and Canada. Staff of the Commission has been assisted in its investigation by Washington State Securities, the Alberta Securities Commission and the Royal Canadian Mounted Police, Commercial Crime Section.

Members of the public are encouraged to contact the British Columbia Securities Commission to confirm the registration status of any individual or company who approaches them for purposes of investment. This tip is part of an Investor Protection Kit which is made available to the public, free of charge, by the Commission. The Kit can be obtained by calling the Commission at (604) 899-6500 or 1-800-373-6393.

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