The B.C. Securities Commission has set aside five days in December for a hearing looking into allegations that a Nanaimobased timeshare company illegally sold securities to investors.
The BCSC will convene a hearing panel Dec. 10-14 to look into the allegations against Aviawest Resorts that include selling $12.7 million in notes to 214 investors between December 2006 and June 2011 despite not being registered to sell or advise in securities, and without issuing a prospectus.
According to the BCSC's notice of hearing, 173 investors bought $9.2 million of the securities that Aviawest purportedly sold under an exemption for friends, family and business associates. The BCSC alleges the exemption did not apply. The notice of hearing points out another 18 investors invested $1.2 million.
The BCSC has named as co-respondents Aviawest's CFO Rob Di Castri and directors Andrew Pearson, James Pearson, Lawrence Pearson and Susan Pearson. Zulak Financial Group and its directors, Melvin Zulak and Karla Ann Davis, were also named as the BSCS alleges that firm marketed Aviawest securities to 21 of its clients costing them $1.8 million.
Aviawest, citing high debts of about $90 million went into creditor protection in the fall of 2011.
