CDNX chasing Hauchecorne's postbox address
Canadian Venture Exchange CDNX
Shares issued
Wed 22 Nov 2000 Street Wire
by Brent Mudry
The former Vancouver Stock Exchange and its successor, the Canadian Venture
Exchange, may levy impressive headline fines on troubled brokers, but their
collection record remains less than impressive.
The VSE's most infamous former broker, at least in recent years,
Jean-Claude Hauchecorne, broker to the stars in the Mafia and murky
offshore worlds, has yet to pay a penny of the total fine of $432,484.82
levied against him 18 months ago.
In a statement of claim filed Tuesday in the Supreme Court of British
Columbia, the CDNX claims Mr. Hauchecorne has refused or neglected to pay
the penalties and costs ordered by a VSE hearing panel on June 2, 1999.
It is not clear how clear how closely the CDNX has been keeping tabs on Mr.
Hauchecorne, its $432,000-man, or whether it has considered a bounty for
anyone tracking him down. "The defendant's current occupation is unknown to
the plaintiff," states the suit, filed by Vancouver lawyer Doug Eyford of
Borden Ladner Gervais.
The CDNX notes its only address for Mr. Hauchecorne is a postbox. "The last
known residential address the plaintiff has for the defendant is R.R. #4,
Site 12, P.O. Box 71, Calgary, Alberta," states Mr. Eyford in the suit.
The collection suit allegations have not yet been proven in court and no
statement of defence has yet been filed.
The star clients and associates of Mr. Hauchecorne, the former branch
manager of Pacific International Securities' Calgary office, include United
States mobsters Phil Gurian, Phil Abramo, a capo in the DeCavalcante
family, Eric Wynn, and Swiss banker Joe Eberhart, the Anker banker.
The P.I. broker frequently knowingly accepted collect calls from jail from
notorious stock fraudster Mr. Wynn, but claimed he thought his
well-publicized client, accused of stock manipulation, broker intimidation
and organized crime connections, was in prison just for tax evasion.
The suit notes that the VSE alleged 25 infractions against Mr. Hauchecorne
in a citation dated July 3, 1998, and he was subsequently judged guilty of
17 infractions, included four he admitted to, by a hearing panel on Feb.
10, 1999.
After a subsequent penalty hearing, on June 2, 1999, the VSE fined Mr.
Hauchecorne $200,000, ordered him to pay disgorgement of $95,000 in
commissions and ordered him to pay the costs of the hearing, which totalled
$137,485, for a total tab of $432,485.
The suit notes that Mr. Hauchecorne applied to the British Columbia
Securities Commission for a stay of penalties, but the commission ruled
against him on June 16, 1999.
By coincidence, the next day, June 17, 1999, U.S. authorities unsealed a
21-count grand jury indictment targeting five stock mobsters, including two
of Mr. Hauchecorne's clients, Mr. Abramo, also known as "Lou Metzer," and
Mr. Gurian, also known as "Martin Clainey."
In the indictment, filed by Charles Wilson, United States Attorney for the
Middle District of Florida, the quintet were charged with violations of the
Racketeering Influenced and Corrupt Organization Act, or RICO, mail fraud,
wire fraud, securities fraud and money laundering. The indictment also
seeks the forfeiture of $18-million (U.S.).
The indictment followed co-ordinated investigations by the Federal Bureau
of Investigation, the Securities and Exchange Commission, and the National
Association of Securities Dealers.
After the BCSC dismissed Mr. Hauchecorne's appeal of the case on Dec. 17,
1999, the former broker filed an appeal with the Court of Appeal for
British Columbia on Jan. 13, 2000. "The defendant has not pursued the
proceedings he commenced in the British Columbia Court of Appeal," states
the suit.
Readers with knowledge of Mr. Hauchecorne's current address and activities
are invited to contact Stockwatch at bmudry@stockwatch.com.
(Readers wishing more details of the Hauchecorne case and related cases may
refer to Street Wires dated Feb. 17, 1999, Feb. 18, 1999, Feb. 19, 1999,
under the symbol VSE, and subsequent stories under the symbols NA, VSE and
CDNX.)
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