BCSC

Settlements

STARTECK INDUSTRIES LTD., et. al. [Sec. 161 & Agreed Stmnt.]

BCSECCOM #:	Document Type: Sec. 161 & Agreed Stmnt.
Published Date: 2000-03-03	Effective Date: 2000-02-28
Details:

IN THE MATTER OF THE SECURITIES ACT
R.S.B.C. 1996, c. 418

AND

IN THE MATTER OF STARTECK INDUSTRIES LTD. AND
JEFFREY DANSILL ENG

Order Under Section 161

1. WHEREAS an Agreed Statement of Facts and Undertaking was executed by Jeffrey Dansill Eng (the “Respondent”) and StarTeck Industries (the “Issuer”) and the Executive Director, a copy of which is attached hereto as Schedule “A” (the “Agreement”);

2. NOW THEREFORE the Executive Director, considering that it would be in the public interest to do so, orders, BY CONSENT, that:

2.1 the Respondent and the Issuer will comply fully with the provisions of the

Securities Act

R.S.B.C. 1996, c. 418 (the “Act”) and Securities Rules, B.C. 194/97 (the “Rules”), from the date of the Order, under section 161(1)(a) of the Act;

2.2 the Respondent will resign from any position that he currently holds as a director or officer of a reporting issuer in British Columbia and will not become or act as a director or officer of any reporting issuer, under section 161(1)(d) of the

Act, for the later of six months from the date the Order and the Respondent successfully completing the Securities Program offered by Simon Fraser University through its Applied Business Program, consisting of the Going Public and Continuous Disclosure courses; and

2.3 the Respondent will refrain from engaging in any investor relations activities for a period of six months from the date of the Order, under section 161(1)(d) of the

Act

DATED at Vancouver, British Columbia, on February 7, 2000.

Steve Wilson
Executive Director

Schedule “A”

IN THE MATTER OF THE SECURITIES ACT
R.S.B.C. 1996, c. 418

AND

IN THE MATTER OF STARTECK INDUSTRIES LTD
AND

JEFFREY DANSILL ENG

Agreed Statement of Facts and Undertaking

The following agreement has been reached between StarTeck Industries Ltd. (the “Issuer”) and Jeffrey Dansill Eng (the “Respondent”) and the Executive Director.

1. As the basis for the orders and undertakings referred to below, the Issuer and the Respondent acknowledge the following facts as correct:

1.1 The Issuer was incorporated under the

Company Act, R.S.B.C. 1979, c. 59 on April 27, 1987, and is a reporting issuer under the Securities Act, R.S.B.C. 1996, c. 418 (the “Act”).

1.2 The Respondent is the President of the Issuer, and on April 20, 1999, caused the Issuer to issue a news release, which contained statements that the Respondent and the Issuer knew, or ought reasonably to have known, were misrepresentations. As the statements were disseminated by the Respondent and the Issuer, such statements are deemed to be made by the Respondent and the Issuer while engaging in investor relations activities or with the intention of effecting a trade in a security, contrary to subsection 50(1)(d) of the

Act

1.3 On May 4, 1999, the Respondent caused the Issuer to issue a news release that retracted and explained certain statements made in the Issuer’s April 20, 1999 news release.

1.4 The Respondent and the Issuer agree that the statements made in the April 20, 1999 news release constituted material changes in the affairs of the Issuer, which, when disseminated, resulted in the increase in the share price of the Issuer.

1.5 The Respondent, who was in a special relationship with the Issuer, and knew of a material fact or material change with respect to the Issuer, which material fact or material change had not been generally disclosed, purchased 20,000 shares of the Issuer at $0.04 per share, on April 19, 1999, contrary to subsection 86(1) of the

Act

1.6 The Respondent’s insider reports disclosed that on April 20, 1999, he sold shares of the Issuer for $0.17 per share, and $0.16 per share, which reflects a profit realized by the Respondent for the 20,000 shares of the Issuer that he purchased on April 19, 1999, of between $2,400 and $2,600.

1.7 The Respondent and the Issuer cooperated fully with staff of the Commission.

2. The Respondent agrees to an order by the Executive Director (the “Order”) as follows:

2.1 the Respondent will comply fully with the provisions of the

Act and Securities Rules, B.C. 194/97 (the “Rules”), from the date of the Order, under section 161(1)(a) of the Act;

2.3 the Respondent will refrain from engaging in any investor relations activities for a period of six months from the date of the Order, under section 161(1)(d) of the

Act;

3. The Respondent undertakes to pay the sum of $5,000 to the Commission, $1,000 of which represents the costs of the investigation and the remainder of which will be a penalty, in accordance with the terms set out in a Promissory Note, executed by the Respondent in favour of the Commission.

4. The Issuer undertakes and agrees to:

4.1 comply fully with the provisions of the

Act and the Rules, from the date of this agreement; and

4.2 pay the sum of $3,000 to the Commission, $1,000 of which represents the cost of the investigation and the remainder of which will be a penalty, in accordance with the terms set out in a Promissory Note, executed by the Issuer in favour of the Commission.

5. The Issuer and the Respondent waive any right they may have, under the Act, or otherwise to a hearing, hearing and review, judicial review or appeal related to, in connection with or incidental to this agreement and the Order.

DATED at Vancouver, British Columbia, on February 24, 2000.

“J.L. Joyner” )
Witness Signature )
J.L. Joyner )
Witness Name (Please Print) ) “L. Skaggs”
150 Glacier Street ) StarTeck Industries Ltd.
Coquitlam, B.C. ) (Signing Authority)
Address )
Accounting Clerk )
Occupation )

DATED at Vancouver, British Columbia, on February 24, 2000.

“J.L. Joyner” )
Witness Signature )
J.L. Joyner )
Witness Name (Please Print) )
150 Glacier Street ) “Jeffrey D. Eng”
Coquitlam, B.C. ) Jeffrey Dansill Eng
Address )
Accounting Clerk )
Occupation )

DATED at Vancouver, British Columbia, on February 28, 2000.

Steve Wilson
Executive Director