(December 13 – 09:55 ET) – The B.C. Securities Commission has cease-traded four companies, and four individuals, after an Alberta broker blew the whistle on their so-called “prime bank” schemes which offered an exorbitant rate of return.
The orders have been issued against Corporate Express Inc., its affiliates Fortress International Ltd., Great American Gold Ltd. and Offshore KnowledgeNetwork> Orders have also been issued against company principals John Thomas McCarthy of Surrey, B.C., Cameron Willard McEwen and Patrick Thomas Stojak, of North Vancouver, and Lynn Ilene Sorsdahl, a scholarship plan sales rep from Kelowna, B.C. While the companies are purportedly registered in the Bahamas they have mailing addresses in Surrey.
The BCSC says the scheme came to light after a prospective investor showed some of its informational material to an unamed broker in Alberta who reported it to the Alberta Securities Commission. The ASC and BCSC then initiated joint investigations.
The BCSC says that more than 400 investors in B.C. and Alberta put up at least US$350 each and some “invested” thousands of dollars in the schemes that operated under the umbrella of Corporate Express Club. These companies offered what they call a “credit enhancement” program that allows investors to participate in various pooled investments, convertible debentures of a mining company, Great American Gold, and tax-free access to their RRSPs.
A commission hearing has been set for 09:00 PT on December 21.
-IE Staff