This document was filed in Vancouver, B.C., on April 27, 1993.
I leave it to the reader to render judgment.
Information of particular interest to the reader begins on paragraph 48 on page 22
SirVinny
(because of its length, it is posted over the next 3 pages on SI)
(Document was scanned and posted, there might be some errors for which I apologize)
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C911769
NO.
VANCOUVER REGISTRY
IN THE SUPREME COURT OF BRITISH COLUMBIA
BETWEEN:
BOBBY HUFF AND ANN DONNELLY
PLAINTIFF(S)
AND:
YORKTON SECURITIES INC. (formerly known as Yorkton
Continental Securities Inc.), CONTINENTAL SECURITIES
(formerly known as Continental Carlisle Douglas),
CONTINENTAL CARLISLE DOUGLAS, CONTINENTAL SECURITIES LIMITED,
CONTINENTAL SECURITIES (ONT.) LIMITED, CONTINENTAL SECURITIES
(QUEBEC) LIMITED, CONTINENTAL SECURITIES (U-K.) LIMITED,
203530 B.C. LTD- (formerly known as MacPhail Securities Ltd.),
FAY SECURITIES LTD., SCAMMELL SECURITIES LTD.,
CARLISLE SECURITIES LTD, MARKWELL SECURITIES LTD.,
GAHALA SECURITIES LTD., CHARPENTIER SECURITIES LTD.,
BROAD SECURITIES LTD., DUGGAN INVESTMENTS LTD.
(formerly known as Duggan Securities Ltd.)
L.O.M. WESTERN SECURITIES LTD. (formerly known as Canarim
Investment Corporation Ltd.), WEST COAST SECURITIES LTD.,
HANDELSKREDIT BANK A-G., ANKER BANK,
ALMA MACPHAIL, JOHN DUGALD MACPHAIL AND LESLEA MACPHAIL,
AS THE EXECUTORS AND TRUSTEES UNDER THE LAST WILL AND
TESTAMENT OF ANGUS MACPHAIL,(DECEASED),
G. ROBERT FAY, JOHN N. CARLISLE, DAVID J. DOUGLAS,
DEAN DUGGAN, DONALD ANTHONY RISLING, BRIAN STANFORD,
BRIAN BOCKING, HENRY LORIN, JULIUS KAROSEN, FRANK CERNEY,
EARL HOPE, RICHARD BROAD, DOUCLAS SCAMMEL, THOMAS TAYLOR, J.
ARTHUR CHARPENTIER
DEFENDANT (S)
STATEMENT OF CLAIM:
1. The Plaintiff, Bobby Huff, is a housewife and resides at
1130 Millstream Road, in the District of West Vancouver, in the
Province of BrItish Columbia.
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2. The Plaintiff, Ann Donnelly, is a housewife and resides
at 96 Via Candelaria, Coto de Caza, in the State of California in
the United States of Amarica.
3. The Defendant, Yorkton Securities Inc. (“Yorkton”),
(formerly known as Yorkton Continental Securities Inc.), which is
the successor to Continental Securities (formerly known as
Continental Carlisle Douglas, which is the successor to Continental
Carlisle Douglas Ltd.), is a body corporate, incorporated pursuant
to the laws of the Province of Ontario, and extraprovincially
registered pursuant to the laws of British Columbia, with its head
office in British Columbia locatod at Bentall 4, 11th Floor, 1055
Dunsmuir Street, Vancouver, D.C.
4. The Defendants, Continental Securities (“Continental”)
(formerly known as Continental Carlisle Douglas), and Continental
Carlisle Douglas (“C.C.D.”), which are the successors to
Continental Carlisle Douglas Ltd., are general corporate
partnerships which were engaged in the business of broker,
underwriter, securities dealer, and investment dealer in the
Province of British Columbia, pursuant to the Partnership Act,
R.S.B.C. The general corporate partnership presently consists of
Fay Securities Ltd., DGM Securities Inc., Charpentier Securities
Ltd., Huber Securities Ltd. and Di Pascquale Securities Ltd. The
address for the above partners is c/o Yorkton Continental
Securities Inc., 10th Floor, 1055 Dunsmuir street, Vancouver, D.C.
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5. The Defendant, Continental Securities (Ont.) Limited,
Continental Securities (Quibec) Limited, and Continental Securities
(U.K.) Limited were the agents of C.C.D. and later Continental
Securities Limited and were in fact, the equivalent of the branch
offices of Continental Securities Limited in Toronto, Montreal and
London, England, respectively.
6. The Defendant, Continental Securities Limited was
incorporated on January 18, 1988. It was operated in tandem with
Continental Securities. It has a registered and records office at
1000 - 840 Howe Street, Vancouver, British Columbia.
7. The Defendants, .203530 B.C. Ltd. (formerly known as
MacPhail Securities Ltd.), Fay Securities Ltd., Scammell Securities
Ltd., Carlisle Securities Ltd., Markwell Securities Ltd., Gahala
Securities Ltd., Broad Securities Ltd., Charpentier Securities
Ltd., Duggan Securities Ltd., were at all material times general
corporate partners in the defendant Continental Securities
(formerly known an Continental Carlisle Douglas) and in Continental
Carlisle Douglas (“C.C.D.”).
8. The Defendant, 203530 B.C. Ltd. (“203530 Ltd.”) (formerly
known as MacPhail Securities Ltd. (“MacPhail Ltd.”)) is a company
incorporated pursuant to the laws of British Columbia with an
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office at 10th Floor - 1055 Dunsmuir Street, Vancouver, British
Columbia.
9. The Defendant, Fay Securities Ltd. (“Fay Ltd.”), is a
company incorporated pursuant to the laws of British Columbia with
an office at Robson Court, 1000 - 840 Howe Street, Vancouver,
British Columbia.
10. The Defendant, Scammell Securities Ltd. (“Scammell” Ltd.”)
is a company incorporated pursuant to the laws of British Columbia
with an office at P.O. Box 49130, 2800 - 595 Burrard Street,
Vancouver, British Columbia.
11. The Defendant, Carlisle Securities Ltd. (“Carlisle Ltd.”)
is a company incorporated pursuant to tha laws of British Columbia
with an office at P.O. Box 49130, 2800 - 595 Burrard Street,
Vancouver, British Columbia.
12. The Defendant, Markwell Securities Ltd- ("Markwell Ltd.”)
is a company incorporated pursuant to the laws of British Columbia
with an office at P.O. Box 49130, 2800 - 595 Burrard Street,
Vancouver, B.C.
13. The Defendant, Gahala Securities Ltd. ("Gahala Ltd.") is
a company incorporated pursuant to the laws of British Columbia,
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with an office at P.O. Box 49130, 2800 - 595 Burrard Street,
Vancouver, British Colunbia.
14. The Defendant, Charpentier Securities Ltd. ("Charpentier
Ltd.") is a company incorporated pursuant to the laws of BrItish
Columbia, with an office at Robson court, 1000 - 840 Howe Street,
Vancouver, British Columbia.
15. The Defendant, Broad Securities ("Broad Ltd.”) is a
company incorporated pursuant to the laws of British Columbia, with
an office at 601 Kenwood Road, West Vancouver, British Columbia.
16. The Defendant, Duggan Investments Ltd. (“Duggan Ltd.”)
(formerly know as Duggan Securities Ltd. (“Duggan Securities”))
is a company incorporated pursuant to the laws of British Columbia,
with an office at #709 - 837 West Hastings Street, Vancouver,
British Columbia.
17. The aforementioned Defendants, 203530 Ltd. (formerly
MacPhail Securities Ltd.), Fay Ltd., Scammell Ltd., Carlisle Ltd.,
Markwell Ltd., Gahala Ltd., Charpentier Ltd., Broad Ltd., and
Duggan Ltd. are hereinafter referred to collectively as "the Nine
Corporate Partners".
18. The Defendant, L.O.M. Western Securities Ltd. ("L.O.M.
Ltd.") formerly known as Canarim investments Corp. Ltd. ("Canarim")
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is a company incorporated pursuant to the laws of Britlsh Columbia,
with an office at 1000 - 840 Howe Street, Vancouver, British
Columbia.
19. The Defendant, West Coast Securities Ltd. ("West Coast”)
is a company incorporated pursuant to the laws of British Columbia,
with an office at 405 - 889 West Pender Street, Vancouver, B.C.
20. The Defendant, Frank Cerney ("Mr. Cerney”), was at all
material times a stock broker with Canarim, now known as L.O.M.
Ltd. His address in unknown to the Plaintiffs.
21- The Defendant, Earl Hope (“Mr. Hope”) , was at all
material times a stock broker with West Coast. His address is
unknovn to the Plaintiffs.
22. The Defendant, Anker Bank, (formerly known as
Handelskredit Bank AG (“Handelskredit Bank”)) is a Swiss Bank vith
an office at Tal Strasse 82 in the City of Zurich in Switzerland.
23. The Defendants, Alma MacPhail, John Dugald MacPhail and
Leslea MacPhail are the executors of the estate of Angus Ian
MacPhail ("Mr. MacPhail") who died in June, 1989, and Mr. MacPhail
was formerly a director of McPhail Ltd, now known as 203530 B.C.
Ltd.
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24. The Defendant, G. Robert Fay ("Mr. Fay”) is a businessman
and a director of both 203530 B.C. Ltd. and of Fay Ltd. and resides
at 6850 Laurel Street, Vancouver, British Columbia.
25. The Defendant, John N. Carlisle ("Mr. CarlisIe”) is a
businessman and a director of Carlisle Ltd. and resides in
Vancouver, British Columbia.
26. The Defendant, David J. Douglas ("Mr. Douglas") is a
businessman and a director of Markwell Securities Ltd. and resides
at 1067 West 47th Avenue, Vancouver, British Columbia.
27. The Defendant, Dean Duggan ("Mr. Duggan") is a
businessman and a director of Duggan Ltd. and resides at 4086 Yale
Street, in Burnaby, British Columbia.
28. The Defendant, Douglas Scammell, ("Mr. Scammell”) is a
businessman and a director of Scamell Securities Ltd. and resides
at 6895 - 272nd Street, Aldergrove, British Columbia.
29. The Defendant, Richard Broad, ("Mr. Broad") is a
businessman and a director of Broad Securities Ltd. and resides at
601 Kenwood Place, West Vancouver, British Columbia.
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30. The Defendant, Thomas Taylor, ("Mr. Taylor") is a
businessman and a director of Gahala Securities Ltd. and resides
at 7605 Garrett Drive, Delta, British Columbiia.
31. The aforementioned Defendants, the executors of the
MacPhail Estate, Mr. Fay, Mr. Carlisle, Mr. Douglas, Mr. Duggan,
Mr. Scammell, Mr. Broad, and Mr. Taylor are hereinafter referred to
collectively as the "Eight Individual Partners".
32. The Defendant, Donald Anthony Risling ("Mr. Risling”) is
and was at all material times a businessman, stockbroker and an
officer of Yorkton. He resides at 4778 Woodgreen Drive, West
Vancouver, British Columbia.
33. The Defendant, Brian Stanford, ("Mr. Stanford") , is a
businessman and was at all material times a stockbroker with
Yorkton. His address is unknown to the Plaintiffs.
34. The Defandant, Brian Bocking (“Mr. Bocking”), is a
businessman and was at all material times a stock broker with
Yorkton. His address is unknown to the Plaintiffs.
35. The Defendant, Henry Lorin is a businessman and presently
is serving a three year prison sentence in a Penitentiary, in the
State of California, U.S.A.
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36. The Defendant, Julius Karosen, is a businessman and
resides in Los Angeles, in the State of California, U.S.A.
37. The Defendant, J. Arthur Charpentier, is a stockbroker
and was at all material times an officer and partner in and an
employee of C.C.D. and C.C.D. Ltd. and Continental Securities Ltd.
He resides At #9 - 5389 Vine street, Vancouver, British Columbia.
38. The Plaintiffs in this action were Plaintiffs in an
action ("the First Action") against Leslie Price ("Mr. Price"),
Arlene Price ("Mrs. Price"), J. Arthur Charpentier ("Mr.
Charpentier") and Continental Carlisle Douglas Ltd. (“C.C.D.
Ltd.”), in which tha B.C. Court of Appeal found Mr. Price, Mr.
Charpentier and C.C.D. Ltd., jointly and severally liable to pay
damages in the amount of approximately $3 million to the Plaintiffs
for fraudulent breach of fiduciary duty. (In these pleadings
“fiduciary duty” and “trust" will be used interchangeably),
39. The trial court and the appeal court in the first action
made, inter alia, the following findings:
39.1 "The plaintiffs are two single women who placed a total
of some $600,000 for investment in the hands of the
defendant Leslie Price, a chartered accountant engaged
in promotional and other activities on the Vancouver
Stock Exchange, and were thereafter systematically
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defrauded by him through acts of deceit and forgery,
misapplication of their funds and theft of their stock
certificates.”
39.2 "It was through the defendant J. Arthur Charpentier, a
chartered accountant, stockbroker and partner in the
defendant Vancouver brokerage firm, Continental Carlisle
Douglas Ltd., that Mr. Price bought and sold shares on
behalf of the plaintiffs, and it was from the custody of
Mr. Charpentier's company that Mr. Price stole stock
certificates belonging to the plaintiffs.”
39.3 “It is regrettable that this (the problem of finding a
way through the maze) may seem to strengthen the position
of those who prey on the investing public by using
facilities, such as those offered by the Vancouver stock
exchange, through which promoters and stockbrokers are
apparently permitted to apply to convoluted stock
promotions, in which they have a large personal interest,
the funds placed in their hands for investment by
unsophisticated clients such as these plaintiffs. The
interest of such investors in getting out at the high
point in the anticipated rise in market value of a
speculatIve stock such as Cumo plainly conflicts with
that of the professional people handling their affairs
whose personal interest lies in reaping the benefits |
