VANCOUVER, Jan. 5 /CNW/ - The executive director of the British Columbia
Securities Commission has issued a notice of hearing alleging that a
mortgage broker illegally traded and distributed securities of a
U.S.-based foreign exchange trading (Forex) company that became the
subject of an Investor Alert and was eventually cease traded.
The notice of hearing says that, between June 2007 and April 2008, Don
Maxwell, a B.C. resident and mortgage broker, was a finder who received
compensation for referring investors to Gold-Quest International.
The notice also says that the BCSC issued an Investor Alert about
Gold-Quest International on March 5, 2008, and cease traded the company
on March 7, 2008.
The notice alleges that Maxwell:
Provided promotional information about investing in Gold-Quest
International to one of his mortgage clients, and assisted the investor
with remortgaging her property and obtaining a line of credit in order
to contribute to the investment.
Assured the client that Gold-Quest International was still a good
investment opportunity when she was making a third investment of US
$120,000, even after he was aware of a BCSC Investor Alert and a news
article about the alert.
Illegally distributed securities to his client when he traded, without
being registered, US $343,000 in Gold-Quest International securities
for which there was no prospectus filed.
These allegations have not been proven. Counsel for the executive
director will apply to set dates for a hearing into the allegations
before a panel of commissioners on Jan. 26, 2011.
The B.C. Securities Commission is the independent provincial government
agency responsible for regulating trading in securities within the
province. You may view the notice of hearing on our website, www.bcsc.bc.ca. If you have questions, contact Ken Gracey, media relations,
SOURCE British Columbia Securities Commission
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