SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Gold/Mining/Energy : BRE-X, Indonesia, Ashanti Goldfields, Strong Companies.
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: alan holman who wrote (27057)9/22/1997 12:20:00 PM
From: alan holman   of 28369
 
Saturday 20 September 1997

B.C. men named in SEC suit

TORONTO - Two British Columbia men are among a half-dozen people
accused by the U.S. Securities and Exchange Commission of participating in
an illegal stock-leasing scheme that cost unsuspecting lenders millions of
dollars, the Globe and Mail reports

The sophisticated two-year scheme involved hundreds of millions of
restricted shares in at least 18 small publicly traded companies, the SEC
alleges in a civil complaint filed in U.S. District Court in San Diego this
week.

Between 1992 and 1994 the defendants acquired certificates for large
blocks of restricted shares in exchange for promised fees ranging from
$25,000 to $1.4 millin US a month. They then illegally used the stock as
collateral in an effort to obtain property, money or credit, the SEC alleges.

The leasing agreements prevented holders from selling or pledging the
shares.

Lehman Brothers Inc.'s London office lost $6.5 million and Bank Leu AG of
Switzerland $3 million as a result of the alleged fraud, the SEC said.

The Canadians named in the complaint are James Ericksteen and Gary
Moore, both of Kamloops, B.C.

Ericksteen was president of Formula Management Services Inc. and James
Ericksteen and Associateds, two Canadian companies which the SEC
alleges were set up to buy, sell and lease the restricted shares.

He is also named as the person in control of Helix Capital Corp., a company
registered in the Turks and Caicos Island and allegedly engaged in similar
activities.

Moore is a Kamloops lawyer whoses clients include Ericksteen and some of
his businesses, the SEC complaint said.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News