News Release

Vancouver - The British Columbia Securities Commission has found that a White Rock man contravened numerous sections of the Securities Act while promoting two investment schemes to people in Canada and other countries.

Between January 2000 and November 2004, Brian David Anderson contravened the Securities Act while promoting two investments, Frontier Assets and the Alpha Program. A commission panel ruled that Anderson perpetrated a fraud, made misrepresentations, and distributed securities illegally in his efforts to promote these investments.

Anderson lived and worked in British Columbia while conducting the majority of this investment activity. He raised approximately $14.7 million from 352 investors, 57 of whom were residents of B.C. while promoting Frontier Assets and the Alpha Program.

Anderson held out Frontier as a separate company, but in fact it was just a name he used to promote the investment.  Anderson promised investors that he would invest their funds in businesses, commodities and financial instruments.  Instead, he used the funds of new investors to pay interest to previous investors.

The panel found that many of the statements Anderson made to Frontier investors were misrepresentations.

In total, 242 people - 41 from B.C. - invested about $7.7 million in Frontier. The panel found it is unlikely that the money will be repaid. Anderson kept between $40,000 and $50,000 for himself.

Anderson also created and operated the Alpha Program, an investment scheme in which investors purchased units of "desks" that were purportedly part of a new commodity exchange called Flat Electronic Data Interchange (FEDI).

Anderson did not invest any of his own money in FEDI, which never commenced operations. The panel found Anderson disbursed about US$3.6 million of investors' money on things other than FEDI, and that many of the statements he made to Alpha Program investors were misrepresentations.

Through the Alpha Program, Anderson raised more than $7 million from 100 investors, 16 of whom were B.C. residents. Most of this money is still outstanding, and there is no evidence it will be repaid.

The Panel will review submissions from the parties before it makes its decision on sanctions.

The B.C. Securities Commission is the independent provincial government agency responsible for regulating trading in securities within the province. You may view the decision/settlement on our website www.bcsc.bc.ca by typing in the search box, Brian David Anderson or 2007 BCSECCOM 198. If you have questions, contact Andrew Poon, Media Relations, 604-899-6880.