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To: Janice Shell who wrote (23489)	7/15/1999 7:53:00 PM
From: EL KABONG!!!	Respond to of 26163

Yet another article on Patterson and Rachfall... globeandmail.ca BCSC imposes orders against two brokers Pacific Int'l employees are hit with temporary sanctions that includes registration suspension ANN GIBBON British Columbia Bureau Thursday, July 15, 1999 Vancouver -- British Columbia's securities watchdog has imposed a series of temporary orders against two Vancouver stockbrokers allegedly caught up in a money laundering and securities fraud scheme masterminded by Russian and U.S. mobs. The executive director of the British Columbia Securities Commission issued an order yesterday suspending the registration of Dirk Rachfall and Michael Patterson, who have been suspended from Pacific International Securities Inc. They must resign as directors or officers of any publicly traded B.C. company they might be involved with. The two have also been temporarily banned from becoming or acting as a director or officer of any publicly listed B.C. company and have been banned from engaging in any investor relations activities, said Sasha Angus, director of enforcement at the BCSC. A BCSC notice of hearing says the commission took the action in the name of protecting the public. Pacific International's chief operating officer Larry McQuid said in an interview that "the action the BCSC took is appropriate and we respect it." The brokers' lawyer, Marvin Storrow, could not be reached for comment yesterday. A June 22 criminal complaint filed in the United States by a Federal Bureau of Investigation special agent alleges that the two men "knowingly and wilfully conspired to use and employ manipulative and deceptive devices . . . in violation of securities and other laws of the United States." Much of the complaint pertains to the alleged stock manipulation of a U.S. publicly traded company called Orlando Supercard Inc., a Florida company said to be in the business of marketing prepaid phone cards, travel discounts and mini-vacations. On June 29, while in Seattle, Mr. Rachfall and Mr. Patterson were arrested and several days later an indictment was filed in the United States charging the two with conspiracy to commit securities, mail and wire fraud, conspiracy to commit money laundering, conspiracy to engage in unlawful money transactions, and other alleged wrongdoing. The men spent several days in a Seattle jail but were later released on $650,000 bail (U.S.). They are now back in Vancouver with their families, under police supervision. Pacific International has not been charged with any wrongdoing. On July 22 the BCSC will hold a hearing to consider the temporary orders. Commission staff will apply to the panel of commissioners to have the hearing adjourned and the temporary orders extended to allow them to gather necessary information to complete the investigation, Mr. Angus said. "We'll seek [that] so we can continue taking a further look at the matters and put further evidence before the panel," he said. "But [even though the two haven't been found guilty], when someone is criminally charged it's our policy to take them out of the market in the name of the public interest." Pacific International is 35 per cent owned by the brokerage arm of National Bank of Canada. BCSC sanctions can include fines, banishment from acting as directors or officers of issuing firms, or lifetime bans from trading in the market. KJC