BCSC’S C. PAIGE LEGGAT AND OLUBODE FAGBAMIYE WON’T ACCEPT SETTLEMENT OFFER?

Recently, many of you have asked to see proof of the Settlement Offer that we had sent to the British Columbia Securities Commission in November 2013 – some 5-6 months BEFORE the hearing.

As we have indicated in the past, the BCSC had made an order in June 2013 indicating we had to resign from any and all companies that relied upon securities regulations.   They seized 5 bank accounts that had approximately $63,000 in them.    This too, occurred BEFORE we had the hearing.

By November of 2013, Primex (the Lender) was becoming very impatient and needed the Deercrest property to move forward one way or another.    I approached Kerkhoff Construction and they agreed (with many other terms) to allow the investors in both Falls Capital Corp and Deercrest Construction Fund to participate as non-voting shareholders.  This would have seen the investors participate in net profits of the Deercrest property as it was developed.

As you will see below, the Settlement Agreement focused on the well-being of the former investors and allowed light at the end of the tunnel in terms of possibly seeing funds put back into their control.

As of the summer of 2016 – the Deercrest property has completed and sold the 12 partially completed  units and have begun the necessary steps of completing the remaining 40-50 units that will occupy the site.   From what can be easily determined – the property would currently have very little debt and the remaining units will have substantial profits.   The investors would have received 35% of this profit until to projects completion.   The market has exploded in Chilliwack and the units are in very high demand.

We sent the BCSC our Settlement Offer on November 7, 2013 – and they did not even respond until December 31, 2013 – some 7 weeks later.    And again – the Staff Litigators (C. Paige Leggat and Olubode Fagbamiye) indicated they would not take the Settlement Offer to the Executive Director (the only person that could accept the Settlement Offer) – instead, they said they would need me to agree to ALL of the allegations and pay fines and disgorgement of over $5,800,000.   This is extortion!    No where in the Charter of Rights and Freedoms does it indicate a person must plead guilty to all allegations before a court will entertain a settlement.  In fact, we would think there is protection of actions like this in one would read it.

Our Settlement Offer looked like this:

NOTE:  ^ This document contained a typo – the shares allotted to the former investors was 35% – not 25% as mentioned above.

Former Investors – do you think it is OK that the Staff at the BCSC did not even take the Settlement Offer to their boss?   Or do you think that the BCSC should have done something to uphold their mandate which is to “uphold investor confidence”?     BCSC Mission Statement (Click here)

If for one minute you do NOT think this is OK – we think you should contact them at inquiries@bcsc.bc.ca or at their main switchboard at 604-899-6500.   Ask for Peter Brady (Executive Director), Brenda Leong (Chair), or Douglas Muir (Director of Enforcement).    Don’t expect a phone call back as they seem to be hiding under their desks – afraid to answer these very important questions.

Of note – one of the former investors did have contact with Peter Brady a while back and he would not answer her questions – citing that there was a confidentiality clause that prohibits him talking about any case to a Third Party.  As this directly affects the former investors – I would suggest that this is NOT a Third Party situation…

THAT BEING SAID, ANY OF THE FORMER INVESTORS THAT WOULD LIKE ME TO SIGN A DOCUMENT INDICATING YOU HAVE FULL AUTHORITY TO DISCUSS THE SETTLEMENT AGREEMENT WITH ANY BCSC STAFF MEMBER LET ME KNOW AND I WILL ARRANGE TO HAVE IT PREPARED!   

Does anyone find it extremely ironic that they cite not being able to talk to the investors about their and our matter – but then they will not talk to me either?   They are a complete joke run by incompetent people!