Attention Investors:
British Columbia Securities Commission announces TAC International agrees to offer
refunds to investors
VANCOUVER, Feb. 24 /CNW/ - A Bahamian company that promised investors
they could double their money in 90 days by trading in international bank
debentures has agreed to offer those investors full refunds, according to a
settlement reached with the British Columbia Securities Commission.In an Agreed Statement of Facts released today, TAC International Ltd.
(TAC) also agreed to pay the commission $25,000, of which $10,000 represents
investigation costs and the balance an administrative penalty.The company, incorporated in Nassau, does not have a B.C. office and is
not registered to sell securities here. As part of the settlement, the company
agreed to a permanent ban from trading in securities in B.C.Under an elaborate scheme, between August 1996 and August 1997, the
company promoted an investment plan that it said involved trading in
international bank debentures or instruments. Investors were encouraged to set
up an international business corporation (IBC).After investors incorporated at a cost of $1,500 US, TAC would then loan
$1,500 US to the investors' IBC. The funds were then purportedly pooled by
TAC with the money of other investors in order to invest in a bank debenture
trading program.The company operated through a network of investment consultants in B.C.
Investors were told they could expect returns on the $1,500 US of 40 per cent
in the first 45 days and 60 per cent in every 45-day period after that. As
well as violating requirements that TAC be registered to sell securities, the
scheme also ran afoul of the Act as the securities being sold required a
preliminary prospectus and prospectus to be filed with the Executive Director.Under the refund offer, the company must send a copy of the commission
settlement to each of its B.C. investors along with a letter setting out the
refund offer, which remains in effect for 30 days after the investor receives
the letter.The commission also entered into settlements with a number of individuals
who promoted the TAC scheme in British Columbia and were also investors in the
scheme. They received trading bans of up to three years and fines of up to
$7,500.A copy of the settlement can be obtained on the commission's web site
(www.bcsc.bc.ca) or by contacting Communications Manager Michael Bernard at
899-6500.The B.C. Securities Commission is the independent provincial government
agency responsible for regulating trading in securities and exchange contracts
in the province.
For further information: Michael Bernard (604) 899-6500 or (BC only)
1-800-373-6393
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