Settlements
DONALD LYNN WHORLEY, et. al. [Sec. 144 & Agreed Stmt]
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BCSECCOM #:
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Document Type:
Sec. 144 & Agreed Stmt
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Published Date:
1997-02-21
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Effective Date:
1997-02-18
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Details:
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IN THE MATTER OF THE SECURITIES ACT
S.B.C. 1985, c. 83
AND
IN THE MATTER OF DONALD LYNN WHORLEY, JAMES NEWTON,KEATH AVEN,
INTIYAZALI HUDANI AND LISA DAWN MOFFAT
Order Under Section 144
WHEREAS an Agreed Statement of Facts and Undertaking was executed by Intiyazali Hudani and the Executive Director, a copy of which is attached hereto as Schedule “A”;
NOW THEREFORE the Executive Director, considering that it would be in the public interest to do so, orders, BY CONSENT, that under section 144(1)(d) of the Securities Act, S.B.C. 1985, c. 38, Hudani be prohibited from becoming or acting as a director or officer of any reporting issuer for a period of 10 years from the date of this Order.
DATED at Vancouver, British Columbia, on February 18, 1997.
Paul C. Bourque
Executive Director
SCHEDULE “A”
IN THE MATTER OF THE SECURITIES ACT
S.B.C. 1985, c. 83
AND
IN THE MATTER OF DONALD LYNN WHORLEY, JAMES NEWTON, KEATH AVEN,
INTIYAZALI HUDANI AND LISA DAWN MOFFAT
Agreed Statement of Facts and Undertaking
The following agreement has been reached between Intiyazali Hudani and the Executive Director:
1. As the basis for the order in paragraph 2 and the undertaking in paragraph 3 of this Agreement, Hudani acknowledges the following facts as correct for the purpose of this proceeding only:
- (a) Burro Creek Minerals Ltd. (“Burro Creek”) was a reporting issuer incorporated in British Columbia under the Company Act, R.S.B.C. 1979, c. 59 until it was dissolved on October 1, 1993. The common shares of Burro Creek were listed on the Vancouver Stock Exchange from April 12, 1989 to May 4, 1991;
(b) Whorley acted as the directing mind of Burro Creek from at least July 5, 1990 through September 12, 1990;
(c) at the request of Whorley, Hudani executed a written agreement on August 7, 1990, whereby he represented that he was the owner of a mineral property, known as the Klondike 3 mineral claim (the “Mineral Claim”), and purported to transfer the Mineral Claim to Burro Creek in exchange for 100,000 Burro Creek shares;
(d) Hudani never had any proprietary interest in the Mineral Claim;
(e) Whorley caused Burro Creek to distribute 100,000 shares in Burro Creek (the “Shares”) to Hudani purportedly in consideration for the transfer of the Mineral Claim;
(f) pursuant to an undisclosed collateral agreement entered into by Whorley and Hudani, certificates representing 95,000 of the Shares were endorsed by Hudani and delivered to Whorley;
(g) the facts set out in paragraphs (c) - (f) constituted a scheme relating to a trade in or acquisition of the securities of Burro Creek (the “Scheme”), and Hudani participated in the Scheme, contrary to section 41.1 of the Securities Act, S.B.C. 1985, c. 83. As a result of the Scheme:
- (i) Burro Creek distributed the Shares without acquiring legal ownership of the Mineral Claim; and
(ii) Whorley secretly acquired 95,000 Burro Creek shares for no consideration.
3. Hudani undertakes to pay to the British Columbia Securities Commission the sum of $35,000 forthwith.
4. Hudani waives any right he may have, under the Act or otherwise, to a hearing, hearing and review, judicial review or appeal related to, in connection with or incidental to this agreement and the Order.
DATED at Vancouver, British Columbia, on February 11, 1997.
| “Gary Snarch”__________________ | ) |  |
| Witness | ) | |
| Gary S. Snarch_________________ | ) | |
| Witness Name | ) | |
| 907-1030 W. Georgia St., Vancouver | ) | |
| Address | ) | Intiyazali Hudani |
| Barrister & Solicitor______________ | ) | |
| Occupation | ) | |
DATED at Vancouver, British Columbia, on February 18, 1997.
Paul C. Bourque
Executive Director