News Release

Released: 11/17/00 Contact: Dean Pelkey
NR 00-50 (604) 899-6880 or
(BC only) 1-800-373-6393 Vancouver -- The British Columbia Securities Commission is concerned an unregistered investment under investigation in Atlantic Canada could surface on the west coast.

Sold under the name Personal Empowerment Program or PEP, the purported investment is also marketed as Davis and Davis Professional Development Seminars Ltd. (PDSL), Lauron Enterprises Ltd. and 3021310 Nova Scotia Ltd. Regulators estimate as many as 80 people have lost more than $850,000 in these ventures.

Laurie (Jeffers) Davis and Ronald G. Davis, the couple behind the investment offerings, are under investigation by the Securities Division of the Prince Edward Island Attorney General's department for trading in an unlicensed investment product. The Nova Scotia Securities Commission has also issued a cease trade order against the couple.

The Atlantic Canada securities regulators believe other individuals involved in promoting the PEP companies may be moving to British Columbia.

Potential investors are recruited through newspaper ads looking for people who want to work from home or who are interested in careers in "human development." They are sold membership packages that include workbooks, videos, training manuals and other miscellaneous support tools that allegedly enable them to sell PEP packages to others.

Once they become a "PEP member," they are offered "investment blocks" in one of the companies -- PEP, PDSL, Lauron Enterprises or 3021310 Nova Scotia Ltd. Investors are told the companies have huge growth potential and are close to signing lucrative TV contracts for a program promoting PEP. Investors are also promised returns of up to 25 per cent annually.

Anyone approached by individuals claiming to be associated with PEP or Davis and Davis Professional Development Seminars should contact the BCSC at 899-6600 or 1-800-373-6393.

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

In brief:

The investment: Similar to a multi-level marketing program, investors are recruited to sell the Personal Empowerment Program - a program of "self-help" materials. Once they become a "PEP member," they are presented with an opportunity to purchase "investment blocks" of the related PEP companies with promises of 25 per cent annual return.

The companies: Personal Empowerment Program (PEP)
Davis and Davis Professional Development Seminars Ltd.
Lauron Enterprises Ltd.
3021310 Nova Scotia Ltd.

The investors: Recruited through newspaper ads aimed at people who want to work from home, the investors buy PEP membership kits then buy "investment blocks" in the associated companies.

Losses: At least 80 individuals have lost $850,000.

Under investigation
in Atlantic Canada: Laurie (Jeffers) Davis
Ronald G. Davis


Investment Tips - Avoid falling prey to a con artist

• 
  Avoiding being hurt by a con artist is as easy as doing your homework--before you invest.
• Contact the British Columbia Securities Commission to see if the investment vehicle and the person selling it are registered. The BCSC can also tell you if the salesperson has a disciplinary history, that is, whether any civil, criminal or administrative proceedings have been brought against him or her.
• Contact your local Better Business Bureau to see if any complaints have been filed against the venture's promoters or principals.
• Deal only with dealers or advisers having a proven track record.
• Ask for written information on the investment product and the business. Information such as financial data on the company and the risks involved in the investment is contained in a prospectus. Read it carefully. Don't take everything you hear or read at face value. Ask questions if you don't understand, and do some sleuthing for yourself. If you need help in evaluating the investment, go to someone independent whom you can trust such as an attorney or an accountant.
• Steer clear of investments touted with no down-side or risk.

• Be especially careful if the salesperson downplays any downside or denies that risk exists. Con artists usually are not very good at answering important questions. Watch out if the salesperson is reluctant to provide information on the following:
  o The background, educational history and work experience of the deal's promoters, principals or general partners;
  o Information on whether your investment monies will be segregated from other funds available to the business;
  o Written information on the business' financial condition, such as a balance sheet and bank references;
  o The prior track record of the business and its principals;
  o The salesperson's name, who he or she work for, his or her background and what commission or other compensation he or she will receive.