Two directors of timeshare company Aviawest Resurts Inc. have reached a settlement with the BC Securities Commission (BCSC), in which they admitted to illegally distributing the company’s securities, the regulator has announced.
The regulator says B.C. company Aviawest sold timeshare interests in vacation properties.
According to the BCSC, Nanaimo residents and Aviawest directors Melvin Zulak and Karla Ann Davis have admitted to selling Aviawest’s promissory notes from February 2010 to April 2011 without filing a prospectus or getting an exemption from the prospectus requirements.
The BCSC says that Zulak and Davis sold the promissory notes through Nanaimo-based Zulak Financial Group Ltd.
According to the BCSC, Zulak and Davis have admitted that 14 of Zulak Financial’s clients purchased promissory note totalling $770,044 during the period in question, generating approximately $7,700 in commissions for Zulak Financial.
The BCSC says that Zulak and Davis have each agreed to pay $6,000 to the commission for their misconduct. It further adds that Zulak and Davis co-operated fully with commission staff and have no history of regulatory or disciplinary history. According to the BCSC, Zulak and Davis remain registered as exempt market dealers.
