AMERICAN INVESTORS = CANADIAN INVESTORS - Just Like Two Peas In a Pod, Both Victims of Crime and Corruption with No Sign of Law Enforcement

Below is a chronology of events starting when I first read the news article covering the settlement between the British Columbia Securities Commission (BCSC) and the (other) crooks at Union Securities, Ltd. The settlement levied a $1.77 million dollar fine against Union Securities that had more of the characteristics of a payoff than of a fine.

The article reads like it was written by the BCSC.

The original article:

Next came my letters of inquiry to the British Columbia Securities Commission. The BCSC is the Canadian counterpart to the U.S. Securities Commission, both members of the Keystone Cops Club.

I still have many questions for the BCSC, but they have yet to answer my first questions sufficiently. When the BCSC realized that I was not going to accept the “for general consumption of the sheep” answer, they “dummied up”.

My first letter to the BCSC:

Sirs:

Today a story broke that the British Columbia Securities Commission, the Investment Dealers Association and Market Regulation Services, completed a "regulatory action" against Union Securities Ltd. and its three top officers, John Thompson, Rex Thompson and Norm Thompson.

The investigation, to be kind, was a farce.

No one is going to jail despite several laws being broken.

No regulatory changes have been announced to prevent a repeat offense by Union Securities, which is already known to be run by crooks.

No regulatory changes were announced that would prevent bogus holding companies from being established in the Yukon.

More importantly, NO ONE THAT WAS ROBBED OF THEIR LIFE SAVINGS WILL GET A DIME RETURNED.

What kind of punishment was handed down by the BCSC?

It did not even amount to a wrist slap. No criminal charges were announced despite several laws being broken. Even more unfortunate, the SEC was not involved, despite many of the crimes committed took place in the U.S. Not one indictment was announced by the SEC.

Union Securities was fined a total of $1.77M CN which was not as much as one broker made the company from commissions from just ONE of the reported "40 shady US clients', "helping Mafia-linked promoter Edward Durante make $36-million (U.S.) manipulating three OTC-BB companies". If you times this by 40, it is clear that the fines imposed were merely a SMALL business expense. Given the stolen money came from innocent investors, the BCSC is obviously unconcerned about those losses and did not require Union Securities to return their share of the ill-gotten gains.

From the article, it was obvious that the Union Securities Crooks were much smarter than the BCSC bureaucrats. As soon as regulators made a token change to rules, the crooks quickly, and easily, circumvented those rules and continued their criminal activity. The BCSC did not mention any change in the circumvented rules to close obvious loopholes in BCSC regulations. In fact, the BCSC did not even bar the criminals from the industry, allowing the continued theft from innocent investors, nor did they prevent Union Securities' criminal partners from creating bogus holding companies in the Yukon, which is still possible.

Perhaps the BCSC is, again, looking forward to skimming off their "take" when Union Securities steals even more money from unsuspecting investors. Given the known criminal reputation of Union Securities, and the BCSC's failure to correct their mistakes, what else would make sense?

Most sincerely,

D R. BXXXX

The response by the BCSC was as inept as the BCSC‘s investigation of Union Securities.

The first response from the BCSC:

Dear XXXXXX

Thank you for contacting the British Columbia Securities Commission (BCSC).

Your comments and concerns in the matter of our settlement agreement with Union Securities Ltd. will be forwarded to the appropriate staff for future consideration.

The British Columbia Securities Commission does not have the power of the courts and cannot compel a securities dealer to compensate investors for their investment losses. We encourage investors that are seeking compensation to consult with legal counsel to determine what civil remedies would be most appropriate to pursue.

We appreciate you taking the time to bring your concerns to our attention.

British Columbia Securities Commission
PO Box 10142, Pacific Centre
701 West Georgia Street
Vancouver, BC V7Y 1L2

As I said, I was not very satisfied with the above answers, especially given the buffoons' inability to recognize that the money investors lost was not of their own doing.

I made efforts to stay “polite” but it was not particularly easy, especially when what I really wanted to do was give them a good shake.

My first response to the BCSC:

Thank you for a most prompt reply.

For future correspondence, if you could direct me to a more appropriate contact, I would be more than willing to save you any unnecessary trouble.

I still have many questions, as I feel this is a very grave matter.

To compel a member to pay a $1.77M fine without consideration of those that were actually damaged does not speak well of any regulation the BCSC could  imagine.

For the Canadian Government to allow the BCSC to adjudicate ANY situation with disregard to criminal activity is appalling.

Please, I would very much like to continue this research, and your help in doing so would very much be appreciated.

Most sincerely,
D R BXXXX

The next response I got from the BCSC was a bit less “canned”, but not much.

The second response from the BCSC:

Dear XXXXX:

Thank you for contacting the British Columbia Securities Commission (BCSC) again.

You can continue to direct your questions and concerns to this electronic mailing address. We will respond to questions that are within our jurisdiction and we can also provide suggestions and sources for research on matters that are not within our jurisdiction.

The BCSC is the British Columbia government agency responsible for regulating trading in securities in British Columbia. In Canada, the securities industry is not federally regulated. You can learn more about the BCSC from our web site at:

<http://www.bcsc.bc.ca/about.asp>.

The BCSC does cooperate and share information with other enforcement agencies and securities regulatory organizations. These agencies include the United States Securities and Exchange Commission and the Royal Canadian Mounted Police.

If you require additional assistance, please contact us again.

British Columbia Securities Commission
PO Box 10142, Pacific Centre
701 West Georgia Street
Vancouver, BC V7Y 1L2
Inquiries@bcsc.bc.ca

604 899-6500 - Main switchboard
604 899-6854 - Inquiries or Complaints
1 800 373-6393 - Toll Free in BC and Alberta
604 899-6506 - Fax

I knew better than to get too excited about this new level of cooperation because I knew my next response would be a little tougher for them to answer in a straightforward manner.

Something to do with self-incrimination.

My next response to the BCSC.

I am relieved to know that you do share information with law enforcement, especially given that your investigation produced evidence of criminal activity.

Can you tell me on what date the BCSC sent a referral to the RCMP and to the SEC concerning the illegal trading?

Also, you are yet to discuss the bogus holding companies in the Yukon and the continued ability to have these bogus holding companies created. Who is responsible for regulating these holding companies? If not the BCSC, did the Commission refer this matter to the appropriate agency and what agency would that be?

In other comments, you incorrectly assumed that the investment losses I referred to were from decisions made by the individual investor. The loss I spoke to was the stock value lost due to the illegal trading Union Securities was complicit in committing. Does the BCSC not have the ability to recognize that these criminals were making millions of dollars on the backs of INNOCENT, UNSUSPECTING stockholders? Just where does the BCSC think those ill-gotten gains originated?

The fine you levied against Union Securities was a tiny percentage of the money they literally stole from innocent investors. That fine amounted to nothing more than a small business expense for Union Securities, and the fine has all the characteristics of the BCSC PROFITING FROM CRIMINAL ACTIVITY. Your failure to recognize this and address it, does not speak well of the job the BCSC is doing to create a fair market. Is that not part of your policy? Is the BCSC not concerned about the appearance of impropriety?

Thank you,
D R BXXXX

Perhaps I was a bit harsh. Hardly. The truth is the truth.

Anyway, someone with an actual brain must have read my letter this time and I got the “lawyer” answer I expected the first go-round.

The LAST response from the BCSC:

Dear XXXXX:

Thank you for contacting the British Columbia Securities Commission (BCSC) again.

We are currently reviewing all of your questions and concerns and we will respond to you on completion of our review.

British Columbia Securities Commission
PO Box 10142, Pacific Centre
701 West Georgia Street
Vancouver, BC V7Y 1L2

You could say that the last response from the BCSC was prudent considering the accusatory questions I asked, but given that the BCSC has taken over 17 months to make a decision in the criminal activity of another set of crooks, Pacific International, I do not suggest holding your breath waiting for the next installment by the BCSC.

In the meantime of corresponding to the BCSC, it was suggested to me to write to Mr. David Baines of the Vancouver Sun newspaper. It sounded like a worthwhile attempt, so I copied Mr. Baines on my original letter to the BCSC.

Mr. Baines initial response to me:

I agree with you 100 per cent. I may do a column on this whole thing. By the way, who are you?

Thanks,
David

As an independent advocate, blog poster, and abused stockholder, I was thrilled. My efforts appeared to have been successful in gaining more public exposure of this huge scandal. Considering that the Columbia Journalism Review considers the New York financial press has done a pitifully poor job of reporting the issue of Strategic Naked Short Selling, getting a quality story in a newspaper located in a major financial region was certainly worthy of a little anticipation.

Was I successful? No, I WAS VERY SUCCESSFUL! Not only did Mr. Baines write a very well written and highly informative article, Mr. Baines has now followed-up his initial article. I think it is reasonable to think that I am his "fluke".

The first article was fantastic. Mr. Baines is an investigative reporter that writes like a champion boxer delivering an overhand right. The second article was a left hook. We did not get a knockout, but I think we may have won this round.

When I responded to Mr. Baines’ question of “By the way, who are you?” This was my answer.

I am just a "foot-soldier" in this war against organized corruption in yours and my financial centers. I truly believe that this scandal of corruption will reach the highest levels in human history, as I also believe it effects all investors around the world to the tune of trillions of dollars. I also believe that those given the responsibility to protect the public from this corruption, are in fact complicit in the crime.

The whole purpose of this exercise was to illustrate to the reader that everyone can make a difference in this war on corruption. We ALL have to keep plugging away, just like the criminals are doing.