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Gold/Mining/Energy : Valu-Net Corp (VNE on ASE - was Faymar) -- Ignore unavailable to you. Want to Upgrade?

To: chicoman who wrote (799)	3/10/1999 2:23:00 PM
From: Ian@SI	Respond to of 974

c, One place I find some info is the Vancouver Sun. Try the story on page D1 of today's business section. vancouversun.com Does the last line in the extract from the story remind anyone of VNE's current activity. (HINT: IF not, I believe it should.) The Story starts: Suits filed against Stanhiser, Canaccord The Vancouver Sun David Baines, Sun Business Reporter Vancouver Sun U.S. investors in a stock scheme orchestrated by former Seventh Day Adventist pastor Gary Stanhiser have filed lawsuits in California and Washington state against him and a string of related parties. Heading the list of defendants in both actions is Vancouver-based Canaccord Capital Corp., which allegedly helped Stanhiser funnel investors' money to offshore companies for reinvestment in public companies, most listed on the Vancouver Stock Exchange. The plaintiffs claim they did not receive their shares or recover their money, and are suing for fraud, breach of contract, breach of fiduciary duty and violation of the Racketeer Influenced and Corrupt Organization Act, commonly known as the RICO Act. The B.C. Securities Commission has alleged that Stanhiser -- who operated from offices in San Bernardino and Vancouver -- and associates Del and Linda Knowlton of Langley raised $15 million from about 300 investors in the U.S. and Canada. The commission alleges the scheme was designed to circumvent rules prohibiting the sale of stock to individual investors in amounts less than $25,000 without a prospectus or offering memorandum.

To: chicoman who wrote (799)	3/10/1999 2:33:00 PM
From: Ian@SI	Read Replies (2) \| Respond to of 974

c, Continuing on with the same story... It amazes why anyone would knowingly assume this much risk when there are so many legitimate companies with real prospects, that fully comply with securities laws, that have revenues (and sometimes even earnings), that fully disclose their business plans; that, in short, give an investor much of the information needed to better ensure a profitable investment. VNE won't even disclose whether or not it stands to gain revenue from the activities currently being described in the press releases, or if so, how much. Oh well, as PT Barnum said, "There's a sucker born every minute" Were you included in that group? ;-) ... The lawsuit alleges that officials of these companies -- including IMA president Joe Grosso, Golden Hat president Wally Boguski, Mosquito president Brian McClay and Kensington representative Don Nicholson -- gave "sales pitches" and promotional material to induce people to invest. These officials are also named as defendants. The lawsuit claims these defendants "knew, or had reason to know, the pooling arrangements into which the individual investors were entering . . . were sham contrivances designed to evade the securities laws." The companies, however, "benefitted by their participation in the scheme by obtaining needed working capital and so were willing to 'go along'." The suit alleges Vancouver lawyer Stephen Dadson helped "concoct" the scheme and "cloak it with the appearance of legality" by "drafting documents designed to conceal the true nature of what was occurring." The suit also names Jamal Dawood, Andrea Buckberrough and Del Knowlton, all of whom received commissions for facilitating the "illegal stock placements." The lawsuit says Dawood acted as a "straw man" for Stanhiser, receiving commissions for transactions in which he had no real involvement. It also claims Knowlton's commissions were actually for Stanhiser's benefit. The lawsuit claims Canaccord was "used by the defendants to give credibility to their scheme and to facilitate the offshore transactions and sham 'loan' or pooling arrangement to evade the securities laws." It alleges Canaccord broker John Johnston and his assistant, Graham Dahl, "knowingly and deliberately conspired with and worked with defendant Stanhiser and his cohorts to defraud plaintiffs and the other victims." It also claimed that Canaccord compliance director Ward McMahon and Canaccord vice-president David Horton "either negligently or deliberately turned a blind eye to what was going on . . . ." Whole story may be enjoyed at: vancouversun.com