Settlements

DONALD LYNN WHORLEY, et. al. [Sec. 144 & Agreed Stmt]

BCSECCOM #:
Document Type:
Sec. 144 & Agreed Stmt
Published Date:
1997-02-21
Effective Date:
1997-02-18
Details:


IN THE MATTER OF THE SECURITIES ACT
S.B.C. 1985, c. 83

AND

IN THE MATTER OF DONALD LYNN WHORLEY, JAMES NEWTON, KEATH AVEN,
INTIYAZALI HUDANI AND LISA DAWN MOFFAT


Order Under Section 144

WHEREAS an Agreed Statement of Facts and Undertaking was executed by Donald Lynn Whorley and the Executive Director, a copy of which is attached hereto as Schedule “A”;

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

1. under section 144(1)(c) of the Securities Act, S.B.C. 1985, c. 83, that the exemptions described in sections 30 to 32.1, 55, 58, 80 and 81 do not apply to Whorley for a period of 15 years from the date of this Order; and

2. under section 144(1)(d) of the Act, Whorley be prohibited from becoming or acting as a director or officer of any reporting issuer for a period of 15 years from the date of this Order and until he has successfully completed a course of study satisfactory to the Executive Director concerning the duties and responsibilities of officers and directors.


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





Paul C. Bourque
Executive Director


SCHEDULE “A”
IN THE MATTER OF THE SECURITIES ACT
S.B.C. 1985, c. 83

AND

IN THE MATTER OF DONALD LYNN WHORLEY, JAMES NEWTON, KEATH AVEN,
INTIYAZALI HUDANI AND LISA DAWN MOFFAT


Agreed Statement of Facts and Undertaking

The following agreement has been reached between Donald Lynn Whorley and the Executive Director:

1. As the basis for the order in paragraph 2 and the undertaking in paragraph 3 of this Agreement, Whorley acknowledges the following facts as correct for the purpose of this proceeding only:
      (a) Burro Creek Minerals Ltd. (“Burro Creek”) was a reporting issuer incorporated in British Columbia under the Company Act, R.S.B.C. 1979, c. 59 until it was dissolved on October 1, 1993. The common shares of Burro Creek were listed on the Vancouver Stock Exchange from April 12, 1989 to May 4, 1991;

      (b) Whorley acted as the directing mind of Burro Creek from at least July 5, 1990 through September 12, 1990 (the “Relevant Period”);

      (c) during the Relevant Period, Whorley caused Burro Creek to enter into 10 written agreements (the “Agreements”) whereby 10 mineral claims (the “Mineral Claims”) were purportedly transferred by the vendors (the “Vendors”) to Burro Creek in exchange for Burro Creek shares;

      (d) during the Relevant Period, in 10 distributions (the “Distributions”), Whorley caused Burro Creek to distribute one million shares in Burro Creek (the “Shares”) to the Vendors purportedly in consideration for the transfer of the Mineral Claims;

      (e) a majority of the Vendors had no proprietary interest in the Mineral Claims;

      (f) pursuant to undisclosed collateral agreements between Whorley and the Vendors, most of the Shares were endorsed by the Vendors and delivered to Whorley;

      (g) As a result of the facts set out in paragraphs (c) - (f):
          (i) Burro Creek distributed the Shares without acquiring legal ownership of most of the Mineral Claims; and

          (ii) Whorley secretly acquired shares in Burro Creek for no consideration;

      (h) during the Relevant Period, Whorley failed to act in the best interests of Burro Creek and to exercise the care, diligence and skill of a reasonably prudent person, contrary to section 142 of the Company Act;

      (i) Whorley caused Burro Creek to issue most of the Shares without full consideration, contrary to section 43 of the Company Act;

      (j) Whorley caused Burro Creek to make most of the Distributions without registration, without filing and obtaining a receipt for a prospectus and without an applicable exemption from the registration and prospectus requirements of the Securities Act, S.B.C. 1985, c. 83 (the “Act”), contrary to sections 20 and 42 of the Act; and

      (k) Whorley caused Burro Creek to fail to file press releases and material change reports regarding most of the Distributions, contrary to section 67 of the Act.
2. Whorley consents to an order (the “Order”) by the Executive Director:
      (i) under section 144(1)(c) of the Act that any or all of the exemptions described in sections 30 to 32.1, 55, 58, 80 and 81 do not apply to Whorley for a period of 15 years from the date of the Order; and

      (ii) under section 144(1)(d) of the Act that Whorley be prohibited from becoming or acting as a director or officer of any reporting issuer for a period of 15 years from the date of the Order and until he has successfully completed a course of study satisfactory to the Executive Director concerning the duties and responsibilities of officers and directors.

3. Whorley undertakes to pay to the British Columbia Securities Commission the sum of $15,000.

4. Whorley waives any right he 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 11, 1997.


“P. Couper”_________________)
Witness Signature)
Paula Couper_______________)
Witness Name)Donald Lynn Whorley
1100-865 Hornby St., Vancouver)
Address)
Legal Secretary______________)
Occupation)

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





Paul C. Bourque
Executive Director

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