News Release

Vancouver – In a settlement agreement with the British Columbia Securities Commission, Kenneth Dean Chung has admitted that he illegally sold securities in a B.C.-based company that is now defunct.

The agreement states that between March and July of 2008, Chung distributed securities of 0804469 B.C. Ltd. to four individual investors by issuing promissory notes in the amount of $100,000 each, raising a total of $400,000.  The four investors were all residents of B.C., as was Chung during the period in question. Chung has never been registered in B.C., and 0804469 has never filed a prospectus or made any exempt distribution filings with the BCSC.
 
The company sought to raise capital for the development of a real estate project located in Kelowna, B.C. The promissory notes offered investors a 20% per annum return on their money, and had a term of six months. The settlement notes that the Kelowna project eventually fell apart as a result of 0804469’s inability to obtain additional financing during the 2008 financial crisis.

Chung acknowledged that by distributing and trading the securities of 0804469 without having filed a prospectus and without the appropriate exemptions, he breached securities laws regarding registration and prospectus requirements.

For his misconduct, Chung must resign any position that he holds as a director or officer of any issuer or registrant, and he is prohibited from becoming or acting as a director or officer of any issuer or registrant for a period of five years. He is also prohibited, for the same period, from acting in a management or consultative capacity in connection with the securities market, and from engaging in investor relations activities. Chung is required to disseminate to the public any information or record relating to the affairs of 0804469 necessary for investors to claim their investments as a loss on their income taxes.

The agreement also noted that Chung personally invested over $100,000, and did not recover any of his investment.

You may view the settlement agreement on our website www.bcsc.bc.ca by typing Kenneth Dean Chung or 2013 BCSECCOM 77 in the search box. Information regarding disciplinary proceedings can be found in the Enforcement section of the BCSC website.

Please visit the Canadian Securities Administrators’ Disciplined Persons List for information relating to persons disciplined by provincial securities regulators, the Investment Industry Regulatory Organization of Canada (IIROC) and the Mutual Fund Dealers Association (MFDA).

About the British Columbia Securities Commission (www.bcsc.bc.ca)

The British Columbia 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

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Media Contact:
Richard Gilhooley, Media Relations
604-899-6713

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