TSX-V member Yorkton faces new 2DoBiz suit from Ezer
TSX Venture Exchange *TSX
Tuesday June 10 2003 Street Wire
Also New York International Commerce Group Inc (U-NYIN) Street Wire
by Brent Mudry
Former 2DoBiz director Adam Ezer has filed a new suit against Yorkton Securities Inc., blaming the Vancouver brokerage for his inability to sell off his shares before the controversial penny stock promotion collapsed. In a self-styled amended writ of summons and a separate proposed class action, both filed June 5 in the Supreme Court of British Columbia, Mr. Ezer claims he suffered a significant, but unspecified, financial loss due to Yorkton's handling of his "insider trader papers" and sell orders. (2DoBiz has been renamed New York International Commerce Group.)
Also named as a defendant is Daniel Danzig of Toronto. The allegations in the writ, filed by Mr. Ezer, acting without a lawyer, have not yet been proven in court and no statements of defence have yet been filed. A detailed statement of claim has not yet been filed. Mr. Ezer filed a near-identical writ against Yorkton and Mr. Danzig on Dec. 30, and filed an amended writ, under B.C.'s Class Action Proceeding Act, in this earlier case on June 5.
Although not noted in any of his recent suits, Mr. Ezer served as a director of 2DoBiz and he held 100,000 restricted shares in an account at Yorkton, according to regulatory filings. Mr. Ezer's shares, worth $1.35-million on paper in February, 2000, when the stock peaked at $13.50, plummeted to $110,000, by Jan. 31, 2001, when his intent-to-sell notice was filed, and would now be worth a mere $500, based on the current stock price of a half cent.
(All figures are in U.S. dollars.)
Also not noted in the recent suits is 2DoBiz's status as a favourite penny stock promotion of Ohio viatical, or death insurance, promoter James Capwill, a mob-related client of convicted Vancouver broker Trevor Koenig of Union Securities. Mr. Capwill, a key figure in the $160-million Liberte Capital Group LLC fraud, is reportedly a close business associate of reputed Mafia enforcer James (The Animal) Ciasullo. Mr. Capwill even served a stint as chief financial officer of 2DoBiz, according to an April 6, 2001, regulatory filing.
In his current suit, Mr. Ezer seeks unspecified general and special damages against Yorkton and Mr. Danzig for alleged negligence, breach of contract and breach of duty.
"The plaintiff claims that the defendants failed to properly execute and deliver the necessary documents on time to facilitate the removal of the trading restriction on the plaintiff's shares. The plaintiff claims that the defendants caused the defendants significant negative market impact to the plaintiff's shares by improperly filing insider trader reports (Rule 144) with the United States Securities and Exchange Commission in early 2000," states the suit.
"The plaintiff claims that the defendants modified the quantity and type of sell orders for 2dobiz.com common shares of stock placed by the plaintiff (in particular, from Good Until Cancelled or Open orders to Day orders) in early 2001 at a significant financial loss to the plaintiff."
Mr. Ezer also claims that Yorkton and Mr. Danzig refused to accept the full orders he gave for trading, and violated "the agreement between all parties" regarding commissions charged on such sell orders.
The class action notice adds a few more details. "The application for certification of the plaintiff will seek to certify as a class common shareholders of 2dobiz.com, traded under the ticker symbols DOBZ and DOBZE who held their shares and suffered a direct loss in market value due to, inter alia, the negligence of the defendant in improperly and prematurely filing the plaintiff's Rule 144 Proposed Sale documentation" with the SEC, states this recent notice. In the court filing, Mr. Ezer promises to file a "comprehensive" affidavit and other affidavit evidence sometime in the near future.
According to 2DoBiz's regulatory filings, Mr. Ezer served as director of the company's investment centre, responsible to oversee its development and operation. Prior to joining 2dobiz, he worked with Nesbitt Burns Private Banking Unit and is a Licensed Investment Associate with Nesbitt Burns Private Banking, Vancouver. He has over six years experience in the investment banking industry," stated a filing in early 2000.
If the British Columbia Securities Commission is correct, Mr. Ezer had a rather short career as a registered broker. Registration records show Mr. Ezer was registered with BMO Nesbitt Burns on Jan. 14, 2000, as an investment adviser, and his registration was terminated a month later, on Feb. 17, 2000. No other industry registration is noted in the BCSC record.
In early 2002, 2DoBiz moved from Vancouver to New York, changed names grandly to New York International Commerce Group and was headed by Philip E. Pearce, a former chairman of the board of governors of the National Association of Securities Dealers, dubbed "the father of NASD." NYIC Group also features a star-studded board of "strategic advisers," including Alexander Haig, the former White House chief of staff to President Richard Nixon, and the late Mr. Nixon's brother, Edward C. Nixon.
bmudry@stockwatch.com
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