The British Columbia Securities Commission has reached a settlement agreement with seven securities sales representatives who helped sell more than $13 million of unsuitable investments, including interests in a cattle ranch resort, to unsophisticated investors in Northern B.C.

Rod Albers, Michael Flynn, Debbie Hanrahan, Peter James, Roger Ollenberger, Gordon Paterson and Alastair Sanderson have each agreed to pay the commission administrative penalties and be subject to strict supervision if they seek registration to sell securities in B.C. again. They have also been barred for varying periods from relying on certain exemptions to sell securities and from engaging in investor relations activities.

The seven reps had worked for IDF Financial Services Inc. (IDF) based in Prince George, B.C. During their employment at IDF, they helped to sell securities in a number of issuers, including interests in River Ranch Resort (a cattle ranch resort under development south of Vanderhoof, B.C.) to mostly Northern B.C. investors. In many instances, the interests in River Ranch Resort — a high-risk investment — were sold to people with limited investment knowledge.

The seven were among individuals named in a notice of hearing on May 3, 2001, in which commission staff alleged: the illegal distribution of securities; and sellelling securities unsuitable to the investment needs and objectives

The commission says that during their employment at IDF, the seven reps received training and instruction from the principals of the firm that materially contributed to their breaching the securities legislation of B.C.

As well, in making the trades, the respondents received specific instruction in some cases from IDF’s branch manager that the securities were suitable for clients.

The commission notes that each of the reps has experienced significant financial loss as a result of their employment with IDF, and that each rep has co-operated with commission staff’s investigation.

The seven may seek registration to sell securities again, but only by applying for employment with member firms of the Investment Dealers Association of Canada or the Mutual Fund Dealers Association and if they successfully complete additional training.

The hearing for the corporate respondents and the remaining individuals — Mark Cramer, Michael Cramer, and James Fortin — has been adjourned until Apr. 8, 2002.