The British Columbia Securities Commission announced this morning (August 16) that it has found that a B.C. timeshare company and four of its five directors distributed shares illegally.
The BCSC alleged in its original notice of hearing issued a year ago on August 9, 2012, that Aviawest Resorts Inc. and directors Andrew Pearson, Susan Pearson, James Pearson, Lawrence Pearson and Rob DiCastri distributed Aviawest securities illegally.
The BCSC hearing panel found that the company distributed several million dollars in promissory notes to at least 150 investors, contravening the Securities Act. The panel found that Andrew Pearson, Susan Pearson, James Pearson and Rob DiCastri facilitated the illegal distribution, contravening the act.
The allegations against Lawrence Pearson were dismissed.
The panel ordered that Aviawest be permanently cease-traded.
This is not the first time Aviawest has had dealings with the BCSC.
In December 2012, two directors reached a settlement with the commission after admitting they had illegally distributed company securities.
In that case, Aviawest directors Melvin Zulak and Karla Ann David had admitted to selling promissory notes through Zulak Financial Group Ltd. totalling $770,044, generating approximately $7,700 in commissions, without filing a prospectus. These transactions occurred between February 2010 and April 2011.
