|
|
|
 Business News | March 2008 
Land Bank Company Subject to New Order to Stop Selling Shares
 Cassandra Kyle - The StarPhoenix
go to original
A Saskatchewan Financial Services Commission (SFSC) investigation into a company suspected of illegally selling shares has led to several more cease trade orders placed against a related business and its representatives.
The director of the SFSC securities division issued temporary cease trade orders Thursday against Sierra Madre Holdings MX S.A. de C.V., L&B Landbanking Trust S.A. de C.V. and several of its representatives, including Brian J. Wolf Zacarias, the senior officer and major owner of Sierra Madre; Roger Ayuso, the president of Landbankers International (LBI); Alan Hemingway, the CEO of Sierra Madre; and sales representatives Jason Rogers, Dave Urrutia and Ed and Kim Moore. Neither of the companies and none of the representatives are registered to trade or give advice in securities in Saskatchewan, according to the SFSC.
There were media reports on a January cease-trade order placed against Sonja McAdam of Christopher Lake and November 2007 orders against Kelly Friesen of Warman and Landbankers International, an organization operating out of Puerto Vallarta, Mexico, that bills itself as a "highly profitable, fast growing landbanking company" on its website.
After these reports, LBI contacted Saskatchewan residents who purchased company securities, the commission has found. The investors were offered the option of getting a refund on their investment in LBI or exchanging their LBI securities for limited partnership units in a "new company," Sierra Madre, which is operated by the same individuals and has the same sales representatives, the SFSC stated in a news release.
Local LBI investors were encouraged to invest more money in Sierra Madre and purchase additional limited partnership units, according to the commission.
"They sent a letter out to their investors and said that the negative press is hurting their ability to carry on business. Investors are now doing research and they're checking into it and they're seeing that there's a problem with this company," said Ed Rodonets, head of the SFSC enforcement branch. "In order for them to continue, they've switched the company name over to Sierra Madre Holdings. It gives them a clean slate to do their business and they're not going to show up when people do a Google search."
Rodonets said the operators of LBI, Sierra Madre and L&B Landbanking are one and the same.
"(L&B) Landbanking Trust is a subsidiary company that is one of their partners. They're offering limited partnerships into Sierra Madre Holdings. But in November 2006, Sierra Madre Holdings changed its name to Landbankers International. Now they've flipped it back again," he said.
The Alberta Securities Commission (ASC) has also placed a cease-trade order against Friesen, Landbankers International and its subsidiary BonZac Asociados S.A de C.V.
In a December ASC notice of hearing addressed to the companies and Friesen, the commission alleges Friesen and LBI presented an investment seminar to about 40 people in Red Deer, Alta., one month earlier. The notice says after soliciting investments, Friesen instructed the attendees to make cheques out to the company and send them to his address in Warman.
Once estimated to number 150, recent data shows several hundred Saskatchewan residents are among about 1,400 Canadians in seven provinces who have invested in Landbankers International.
Concerns about LBI first came to light in October 2007 after people contacted by Friesen on behalf of the company complained to the SFSC. Soon after, investigators discovered neither the company nor Friesen had registered to do business in Saskatchewan.
The new cease trade orders expire March 28 and may be extended.
The SFSC is requesting anyone contacted by Sierra Madre Holdings, Landbankers International or any of its representatives to call Rodonets at 306-787-5850.
ckyle(at)sp.canwest.com |
| |
|
Vallarta Weddings
Tell a Friend
Site Map
Print this Page
Email Us