News Release

Released: June 17, 1999 Contact: Michael Bernard
899-6500 or
(BC only) 1-800-373-6393

Vancouver– A British Columbia Securities Commission panel has dismissed a Vancouver broker’s application asking it to stay penalties the Vancouver Stock Exchange imposed against him until the commission has reviewed his case.

In a VSE decision June 2, Jean-Claude Hauchecorne had his broker’s licence revoked for life, was fined $200,000 and ordered to disgorge trading commissions of $95,000 and to pay costs of the VSE hearing into his violations of VSE bylaws.

In rejecting Hauchecorne’s application, the commission panel said that Hauchecorne did not provide sufficient evidence that he would suffer irreparable harm if the stay were not granted and penalties were imposed before the commission review was conducted.

Hauchecorne said in his affidavit that working as a broker is his sole source of employment and that he is the sole provider for his wife and two small children. Citing previous B.C. Court of Appeal cases, the commission panel said Hauchecorne’s "rather vague description of the harm caused to him by the loss of his employment falls far below the level of evidence" the court has said is necessary to show irreparable harm.

"We have received no evidence whatsoever about Hauchecorne’s assets, liabilities, expenses, other sources of income, skills or other employment prospects," the panel said in a decision released today. "As a result, because of a lack of evidence, we are unable to conclude that not granting a stay would cause him irreparable harm."

Meanwhile, the commission has scheduled three days of hearings, beginning July 20, at which a panel will review the VSE disciplinary hearing. Hauchecorne has alleged that a statement made by the chair of disciplinary hearing gave rise to a reasonable apprehension of bias. The chair had said “an offshore account is only offshore because it’s intended to cheat the tax department, money launder or insider trading.”

The penalties were levied after the VSE panel found the Pacific International Securities employee violated Exchange bylaws. Those violations included assisting in the unauthorized transfer of funds, disclosing confidential information and accepting orders from people he knew or ought to have known had histories of securities violations and associations with organized crime. The panel also found that Hauchecorne violated the know your client rule and traded accounts on the directions of unauthorized individuals.

The B.C. Securities Commission is the independent provincial government agency responsible for regulating trading in securities and exchange contracts within the province.

Copies of this decision are available on the commission’s Web site (www.bcsc.bc.ca) or by contacting Communications Manager Michael Bernard at (604) 899-6524 or 1-800-373-6393 (toll-free in B.C. only).