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Gold/Mining/Energy : Cartaway resources -- Ignore unavailable to you. Want to Upgrade?

To: Supervalue who wrote (2327)	1/28/1999 7:47:00 AM
From: wayne cath	Read Replies (1) \| Respond to of 2505

I think the implication is if any company needed some standards in their operating and reporting methods....its cwa.

To: Supervalue who wrote (2327)	1/30/1999 3:45:00 PM
From: Mr Metals	Respond to of 2505

Cartaway Resources Corporation - First Marathon concludes agreement with BCSC concerning Cartaway Cartaway Resources Corporation CWA Shares issued 38,074,893 1999-01-29 close $0.035 Friday Jan 29 1999 See First Marathon Inc (FMS.A) News Release Mr. F. Michael Walsh reports First Marathon Inc.'s principal operating subsidiary, First Marathon Securities Limited, has concluded an agreement with the B.C. Securities Commission in respect of matters arising from the ownership of shares of Cartaway Resources by certain of FMSL's employees, FMSL's role as agent in the financing of Cartaway, and other related matters during the 1994 to 1996 period. In this settlement, FMSL agreed that it had failed to apply proper business procedures to ensure the integrity of capital markets and the BCSC agreed that FMSL had taken remedial steps to address these issues. FMSL agreed to pay $50,000 in investigatory costs to the BCSC and to donate $450,000 to the Mineral Deposit Research Fund at the University of British Columbia. This settlement now concludes all regulatory proceedings in respect of Cartaway involving FMSL. Mr. Michael Bernard of the BCSEC reports First Marathon Securities has agreed to donate $450,000 to a fund that fosters B.C. and geological expertise after acknowledging it breached B.C. securities regulations in the Cartaway Resources case. The Toronto-based First Marathon will pay the moneys into the Mineral Deposit Research Fund at the University of British Columbia and another $50,000 to the B.C. Securities Commission toward the commission's investigation costs. In an agreed statement of facts signed today, the investment dealer acknowledged it failed to properly apply business procedures and failed to ensure that its Vancouver branch manager Robert Disbrow carried out his duties to properly supervise employees. As a result, the dealer "may have inadequately addressed the potential conflicts of interest" that arose among five of its Vancouver brokers, a Calgary office employee, Cartaway and First Marathon's clients, the statement said. The breaches and circumstances "created an unacceptable risk that the integrity of the capital markets might be compromised." A group of the investment dealer's brokers bought control of Cartaway, a shell company on the Alberta Stock Exchange, in late 1994 and 1995. Cartaway shares eventually rose to $26 in May 1996, but eventually dropped to about $2.00 a share after initially promising visual geological reports did not prove out. First Marathon has taken remedial action, satisfactory to the commission, to improve its compliance and supervision programs and procedures. Among the actions are company rules requiring that: none of its employees will act in the legal role of a promoter for any issuer; no employees individually or with others will buy or acquire a corporate shell to obtain access to public market financing; employees must notify the company's vice-president of compliance when their holdings of any public company reach 5 per cent of outstanding shares; the collective holdings of employees of any public company must not exceed 19.9 per cent without the consent of the company's vice-president of compliance. Mr. Michael Bernard of the British Columbia Securities Commission reports A branch manager for First Marathon Securities Ltd. has acknowledged he failed to adequately supervise company employees who profited from trading in shares of Cartaway Resources before the company's stock price collapsed. In an agreed statement of facts signed today with the British Columbia Securities Commission, Vancouver branch manager Robert Disbrow also acknowledged that he did not try to prevent trading in the shares and, in fact, participated in it. Mr. Disbrow agreed he would obey the Securities Act and abide by new management policies First Marathon has put in place. Last August, Mr. Disbrow was fined $110,000 by the Toronto Stock Exchange and suspended for three months from any job in the capacity of a member of that exchange. He also agreed to a permanent suspension in certain supervisory capacities as an exchange member. "In BCSEC's view, the penalties already imposed on him were adequate for the public interest" said Michael Watson, executive director of the B.C. Securities Commission. "It was important that he acknowledge that he had breached BCSEC's regulations and that he agree to abide by them in future." A group of the investment dealer's brokers bought control of Cartaway, a shell company on the Alberta Stock Exchange, in late 1994 and 1995. Cartaway shares eventually rose to $26 in May 1996, but dropped to about $2 a share after initially promising visual geological reports did not prove out. Among the changes First Marathon made to its compliance and supervision programs and procedures were rules requiring that: None of its employees will act in the legal role of a promoter for any issuer; No employees individually or with others will buy or acquire a corporate shell to obtain access to public market financing; Employees must notify the company's vice-president of compliance when their holdings of any public company reach five per cent of issued and outstanding shares; The collective holdings of employees of any public company must not exceed 19.9 per cent without the consent of the company's vice-president of compliance. The B.C. Securities Commission is the independent provincial government agency responsible for regulating trading in securities and exchange contracts in the province. (c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com MM