The British Columbia Securities Commission has reached a settlement with a couple convicted in Prince Edward Island of unregistered trading in securities that will see an end to prohibitions against their participation in the B.C. capital markets.

Laurie Davis and Ronald Davis, of Nova Scotia, have been barred from trading in securities, acting as a director or officer of any issuer, and engaging in any investor relations activity in B.C. since December 2000.

The temporary orders against the pair were put in place to prevent them from soliciting investments in a program known as the Personal Empowerment Program (or PEP) from British Columbia residents. The orders also cease-traded the securities of the corporate entities of Davis & Davis Personal and Professional Development Seminars Ltd., Lauron Enterprises Inc., and 3021310 Nova Scotia Inc.

Under the settlement, it was noted that the respondents have complied with the orders that prohibited them from operating in the B.C. capital markets for over four years and they have agreed to comply with the Securities Act.

On Aug. 28, 2002, the P.E.I. Provincial Court found the respondents guilty of trading in securities without being registered as a broker or salesman of a registered broker. The court found that Laurie and Ronald Davis spoke to P.E.I. residents about the PEP program and solicited investments in the form of promissory notes in the program offering a 25 per cent annual rate of return. The promised returns were not paid.

On Oct. 9, 2002, the P.E.I. court imposed the following sentences:

  • Laurie Davis to 90 days imprisonment and a fine of $1,000;
  • Ronald Davis to 30 days imprisonment and a fine of $1,000; and
  • each of the corporate entities to pay a fine of $3,333.

The couple served their sentences in prison and the fines have been paid.