(May 29 – 13:45 ET) – The British Columbia Securities Commission is investigating Exchange Bank and Trust Inc. and has confirmed earlier orders freezing the bank’s Vancouver account containing US$16.9 million.
“We are faced with allegations that there are funds in the Exchange Bank and Trust account derived from the contravention of securities laws in B.C. and the U.S.,” said the Commission. “It is in the public interest that these funds be preserved for those who may have claims to them.”
Exchange Bank and Trust (EBT) is a private international bank based in Nevis, West Indies. Three initial orders freezing its Vancouver accounts were issued April 13, May 5 and May 9.
Commission investigators allege that Stephen C. Sayre, Terry L. Neal and a group including Edward Durante deposited proceeds of illegal securities trading in the frozen EBT bank account, as well as to accounts at various Vancouver brokerage firms. These brokerage accounts have also been frozen. Investigators also allege that funds were transferred between the bank account and the Vancouver brokerage accounts, and from the bank account to Sayre, Neal and Durante.
EBT is part of a group headed by Sovereign Securities Ltd. that commission investigators allege is trading, advising and conducting portfolio management activities in B.C. in contravention of the Securities Act. The commission’s investigation will extend to securities trading by EBT and its directors, officers, agents, employees and clients. The BCSC will also examine people related to EBT, including Gillian Hobson, the bank’s operations manager.
-IE Staff