BCSC panel finds that B.C. timeshare company and four directors illegally distributed securities

VANCOUVER, Aug. 15, 2013 /CNW/ - A British Columbia Securities Commission panel has found that a B.C. timeshare company and four of its five directors illegally distributed securities.

In a notice of hearing issued on August 9, 2012, BCSC staff alleged that from December 2006 through June 2011, Aviawest Resorts Inc., Andrew Pearson, Susan Pearson, James Pearson, Lawrence Pearson and Rob DiCastri illegally distributed securities of Aviawest.

In its decision, the panel found that that Aviawest distributed several million dollars' worth of promissory notes to at least 150 investors, and in so doing contravened the Securities Act. The panel also found that all of the Pearsons, except Lawrence, and DiCastri facilitated Aviawest's illegal distribution and so also contravened the Act.

The panel dismissed the allegations against Lawrence Pearson.

The panel ordered that Aviawest be permanently cease traded.

The panel made no orders against the Pearsons or DiCastri.  In considering the factors relevant to sanctions, the panel noted that orders under the Act "are protective and preventative, intended to be exercised to prevent future harm".  The panel concluded, "Considering all of these factors, and the public interest, in our opinion it is not necessary to make orders against the individual respondents.  In particular, we are satisfied that they pose no threat to investors or markets, and that orders are not required to deter them from future misconduct".

The B.C. Securities Commission is the independent provincial government agency responsible for regulating trading in securities within the province. You may view the decision on our website, www.bcsc.bc.ca, by typing Aviawest Resoirt Inc., Rob DiCastri, Andrew Pearson, James Pearson, Lawrence Pearson, Susan Pearson, or 2013 BCSECCOM 319 in the search box.  Information regarding disciplinary proceedings can be found in the Enforcement section of the BCSC website.

Please visit the Canadian Securities Administrators' Disciplined Persons List for information relating to persons disciplined by provincial securities regulators, the Investment Industry Regulatory Organization of Canada (IIROC) and the Mutual Fund Dealers Association (MFDA).

Learn how to protect yourself and become a more informed investor at www.investright.org

SOURCE: British Columbia Securities Commission

If you have questions, contact Richard Gilhooley, media relations, 604-899-6713. For public inquiries, call 604 899 6854 or 1 800 373 6393 (toll free).