News Release

Vancouver - The British Columbia Securities Commission has settled with three B.C. residents that admitted to illegally distributing millions of dollars in securities to Canadian investors.

In a settlement agreement with the BCSC, Alvin Lee Johnson, 73, and Victor Schwab, 61, both Prince George residents, and Heng Goh, 63, a North Vancouver resident, admitted to violating various securities laws. 

Johnson, a former mutual fund salesperson, and Schwab, a chartered accountant, admitted they illegally distributed at least $2.1 million of Advanced Rescue Technologies Inc. (ARTI) and approximately $4.5 million of NOF Electrical Generation Inc. (NOF) securities. Johnson and Goh admitted to illegally selling more than $2.5 million VG Capital Group Inc. securities and making misrepresentations to investors.

When making the distributions of VG Capital securities, Johnson and Goh:

• guaranteed minimum returns of eight per cent and spoke of potential returns of 20 per cent
• told investors that the investments were low-risk or risk-free, which they were not
• failed to disclose the operating status of various VG Capital subsidiaries
• failed to disclose the fact that the subsidiaries granted each other interest-free, inter-company loans with investors’ money

Johnson also failed to disclose to investors the loans and commissions that NOF and ARTI paid to various individuals and companies, including himself.

Schwab introduced Gregory Rivers, the director and CEO of ARTI and NOF, to agents who sold the securities of the two companies. Schwab also oversaw the payment of commissions to these individuals and assured investors that the securities were eligible for their registered retirement savings accounts.

Rivers settled with the BCSC in February 2008.

Under the settlement agreement, Johnson is permanently banned, Goh is banned for 12 years, and Schwab is banned for 10 years, with limited exceptions, from trading in or purchasing securities, engaging in investor relations, acting as a manager or consultant in connection with the securities market, or becoming a registrant, investment fund manager or promoter. Their respective market bans also prohibit the three men from becoming or acting as a director or officer of any issuer, registrant or investment fund manager, with the exception of Schwab who has some exemptions.

There is no reasonable prospect of Johnson, Schwab or Goh paying the fines that the executive director would have imposed in the public interest.

The B.C. Securities Commission is the independent provincial government agency responsible for regulating trading in securities within the province. You may view the settlements on our website www.bcsc.bc.ca by typing in the search box, Alvin Lee Johnson, Victor Schwab or Heng Goh or 2008 BCSECCOM 570, 572 or 574. If you have questions, contact Ken Gracey, Media Relations, 604-899-6577.

Learn how to avoid investment fraud at the BCSC's investor education website: www.investright.org.