Settlements

RICHARD FURRER, et. al. [Sec. 161]

BCSECCOM #:
Document Type:
Sec. 161
Published Date:
1997-11-21
Effective Date:
1997-11-18
Details:


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

AND

IN THE MATTER OF RICHARD FURRER AND M. WARD HUGHES

Order Under Section 161


1. WHEREAS an Agreed Statement of Facts and Undertaking was executed by Richard Furrer (“Furrer”), M. Ward Hughes (“Hughes”) and the Executive Director, a copy of which is attached hereto as Schedule “A”;

2. NOW THEREFORE the Executive Director, considering that it would be in the public interest to do so, orders, by consent, that:
      2.1 Furrer will resign from any position that he holds as a director or officer of an issuer in British Columbia and is prohibited from becoming or acting as a director or officer of any issuer in British Columbia, pursuant to section 161(1)(d) of the Securities Act, R.S.B.C. 1996, c. 418 (the “Act”); and

      2.2 Furrer will not engage in any investor relations activities in British Columbia, pursuant to section 161(1)(d) of the Act;

      for a period of three years from the date of this Order;

      2.3 Hughes will resign any position that he holds as a director or officer of an issuer in British Columbia and is prohibited from becoming or acting as a director or officer of any issuer in British Columbia, pursuant to section 161(1)(d) of the Act; and

      2.4 Hughes will not engage in any investor relations activities in British Columbia, pursuant to section 161(1)(d) of the Act;

      for a period of one year from the date of this Order.


      DATED at Vancouver, British Columbia, on November 18, 1997.




      Paul C. Bourque
      Executive Director


Schedule “A”
IN THE MATTER OF THE SECURITIES ACT
R.S.B.C. 1996, c. 418

AND

IN THE MATTER OF RICHARD FURRER AND M. WARD HUGHES


Agreed Statement of Facts and Undertaking

The following Agreement has been reached between Richard Furrer (“Furrer”), M. Ward Hughes (“Hughes”) and the Executive Director:

1. As the basis for the orders and undertakings referred to below, Furrer and Hughes acknowledge the following facts to be correct:
      1.1 GIG International Resources Inc. (“GIG”) is a company incorporated pursuant to the laws of the Province of British Columbia, with its registered and records office at 1600 - 609 Granville Street, in the City of Vancouver;

      1.2 Furrer is resident in British Columbia;

      1.3 Hughes is resident in Washington, United States of America;
        1.4 Furrer was at all material times a director, chairman and chief executive officer of GIG;

        1.5 Hughes was at all material times a director and chief financial officer of GIG;

        1.6 neither Furrer nor Hughes are registered to trade securities in British Columbia pursuant to the Securities Act, R.S.B.C. 1996, c. 418 (the “Act”);

        1.7 the following orders are outstanding against Furrer and Hughes in other jurisdictions:

        Ohio:
            (a) the Ohio Department of Commerce, Division of Securities issued a Cease and Desist Order against Furrer and Hughes on June 10, 1997, for the solicitation of investments in a company of which each was an officer or director, without registering under the Ohio Securities Act, and that order is still outstanding;

            North Dakota:

            (b) the Securities Commissioner of North Dakota on September 24, 1996, issued a Cease and Desist Order against Furrer and Hughes, among others, for the sale and offers to sell of securities in a company in which each was involved, without registering under the North Dakota Century Code which order prevented them from offering for sale or selling in North Dakota any investment until the investment interests were registered with the Securities Commissioner. A civil penalty in the amount of $120,000 was imposed;

            (c) the North Dakota Securities Commissioner issued a further Cease and Desist Order on January 21, 1997, against Furrer and Hughes, and noted that Furrer and Hughes had violated the Cease and Desist Order of September 24, 1996 by selling securities in breach of that order. They were ordered to refrain from selling or offering for sale in North Dakota any investment unless that investment had been registered with the Securities Commissioner. The Securities Commissioner fined Furrer and Hughes individually $10,000 each for their breach of the earlier order, and $50,000 for the present violation. Each order is still outstanding; and

        Washington:

            (d) the State of Washington Department of Financial Institutions, Securities Division, issued a Summary Order to Cease and Desist and revoking exemptions on March 18, 1997 against Furrer and Hughes, among others. This order was issued as a result of misrepresentations made during the course of the sale of securities in FAT Holdings Inc. and related companies. The order required Furrer and Hughes to cease and desist from selling securities in any manner in the State of Washington in violation of its laws, and removed exemptions provided by Washington law;

        1.8 GIG is not a reporting issuer in British Columbia and is not registered pursuant to the Act;

        1.9 Furrer and Hughes invited members of the public within British Columbia to invest in GIG and represented, in the course of doing so, that GIG would be registered on an exchange, in breach of section 50 of the Act;

        1.10 Furrer and Hughes offered securities for sale to the public of British Columbia in GIG, without GIG having issued a prospectus in relation to those securities, in breach of section 61 of the Act; and

        1.11 Furrer and Hughes have separately and corporately, made representations concerning the operations of GIG, which were untrue and are misrepresentations pursuant to section 50 of the Act. Those misrepresentations, which were designed to encourage investment by investors within British Columbia in GIG, include the following:
            (a) representations that GIG had raised substantial sums of money from other sources and other markets; and

            (b) GIG had entered into contracts with other parties concerning business opportunities which would generate substantial revenues.
    2. Furrer consents to an order (the “Order”) by the Executive Director, pursuant to section 161(1)(d), that:
        2.1 Furrer will resign from any position that he holds as a director or officer of any issuer in British Columbia and is prohibited from becoming or acting as a director or officer of any issuer in British Columbia; and

        2.2 Furrer will not engage in any investor relations activities in British Columbia;

        for a period of three years from the date the Order;
    3. Hughes consents to an order (the “Order”) of the Executive Director, pursuant to section 161(1)(d), that:

        3.1 Hughes will resign any position that he holds as a director or officer of an issuer in British Columbia and is prohibited from becoming or acting as a director or officer of any issuer in British Columbia; and

        2.4 Hughes will not engage in any investor relations activities in British Columbia;

        for a period of one year from the date of the Order.
    3. Each of Furrer and Hughes will pay to the British Columbia Securities Commission the sum of $1,000 towards the costs of the investigation of this matter.

    4. Furrer and Hughes 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 November 17, 1997.


      “John Frank” )
      Witness Signature )
      John H. Frank )
      Witness Name ) “Richard Furrer”
      301 - 700 W. Pender St. )
      Vancouver, BC )
      Address )
      Lawyer )
      Occupation )


      DATED at Vancouver, British Columbia, on November 17, 1997.


      “John Frank” )
      Witness Signature )
      John H. Frank )
      Witness Name ) “M. Ward Hughes”
      301 - 700 W. Pender St. )
      Vancouver, BC )
      Address )
      Lawyer )
      Occupation


      DATED at Vancouver, British Columbia, on November 18, 1997.





      Paul C. Bourque
      Executive Director
      ©2024 British Columbia Securities Commission