News Release

Vancouver – The B.C. Securities Commission (BCSC) has ordered a Sooke man to pay a $600,000 penalty for lying to an investor about the ownership of a well-known historic Vancouver Island hotel.

A BCSC panel found that Timothy Craig Durkin committed fraud by telling the investor that she would obtain a part-ownership interest in the Sooke Harbour House by buying shares of SHH Holdings Limited. Durkin told her that SHH, of which he was a director, owned all of the shares of the hotel through a subsidiary, and that by buying 40 per cent of its shares, the investor would obtain a 40 per cent ownership interest in the hotel.

In reality, at that time, SHH did not own any of the shares in the corporation that owned the hotel. The BCSC panel concluded that on three occasions, SHH and Durkin made false statements about the hotel’s ownership, knowing that they would be taken as an accurate representation of its current financial situation.

Based on misleading or false information, the investor’s company signed an agreement with SHH and advanced $1 million to purchase the shares. The funds were spent and have not been recovered.

In addition to the $600,000 administrative penalty, the BCSC panel permanently barred Durkin from B.C.’s investment market. He must resign from any position he holds as a director or officer of an issuer or registrant, and is permanently prohibited from:

• Trading in or purchasing any securities or derivatives
• Becoming or acting as a director or officer of any issuer or registrant
• Becoming or acting as a registrant or promoter
• Advising or otherwise acting in a management or consultative capacity in connection with activities in the securities or derivatives markets
• Engaging in promotional activities by or on behalf of an issuer, security holder or party to a derivative, or another person that is reasonably expected to benefit from the promotional activity, and
• Relying on any exemptions set out in the Securities Act, the regulations, or a decision.

“Only a broad, multi-decade long prohibition will provide a meaningful level of protection to the public,” the panel said.

The panel also ordered SHH to pay $1 million, representing the amount it obtained from the fraud. However, that amount owing to the BCSC would be reduced by the amount paid, if any, to the investor as a result of a judgment in a civil action in the B.C. Supreme Court.

The hotel remains closed and under renovation with no clear timeline for reopening, according to a message on its website.

About the B.C. Securities Commission (www.bcsc.bc.ca)

The B.C. Securities Commission is the independent provincial government agency responsible for regulating capital markets in British Columbia through the administration of the Securities Act. Our mission is to protect and promote the public interest by fostering:

• A securities market that is fair and warrants public confidence
• A dynamic and competitive securities industry that provides investment opportunities and access to capital.

Media Contact:
Brian Kladko
604-899-6713

Public inquiries:
604-899-6854 or 1-800-373-6393 (toll free)
inquiries@bcsc.bc.ca