Aug. 9, 2012
/CNW/ - The executive director of the British Columbia Securities Commission has issued a notice of hearing alleging that a B.C. timeshare company and its directors distributed securities illegally with the assistance of another B.C. company that primarily sells life insurance products.
The notice alleges that from
, Aviawest Resorts Inc. distributed securities to 214 investors without having filed a prospectus, raising approximately
. In doing so, the company and its directors,
contravened securities laws. Aviawest has an office in
, and all Aviawest directors are B.C. residents.
The company claimed that 173 of the investors (collectively representing about
) purchased the securities under the "Family, Friends and Business Associates" exemption, but the exemption was not applicable. For 18 investors who collectively invested
, Aviawest did not claim exemptions from securities laws.
The notice also alleges that between
, Zulak Financial Group Ltd, a B.C. company with an office in
, and company directors
Karla Ann Davis
, marketed Aviawest securities to 21 of their life insurance clients who invested approximately
. Both Davis and Zulak are B.C. residents.
BCSC staff maintain that the directors of Aviawest and Zulak Financial authorized, permitted, or acquiesced in Aviawest's and Zulak Financial's contraventions of securities laws.
These allegations have not been proven. Counsel for the executive director will apply for final orders against the parties The first hearing into the allegations before a panel of commissioners is set for
Tuesday, September 18, 2012
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
, Aviawest Resorts Inc,
Karla Ann Davis
, Zulak Financial Group Ltd. or 2012 BCSECCOM 316 in the search box. Information regarding disciplinary proceedings can be found in the
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
(IIROC) and the Mutual Fund Dealers Association (MFDA).
Learn how to protect yourself and become a more informed investor at www.investright.org
SOURCE British Columbia Securities Commission