| THE SECURITIES ACT | ) |
Order No. 3665 |
) |
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| Section 148 and 19(5) | ) |
February 20, 2002 |
JOHN FRIESEN also known as
JOHN "THRASHER" FRIESEN
and FUTRONICS INC.
WHEREAS:
(A) The Manitoba Securities Commission (the "Commission") has received Information which indicates that securities of Futronics Inc. ("Futronics") have been traded and may continue to be in the process of being traded in Manitoba to members of the public by John Friesen also known as John "Thrasher" Friesen ("Friesen") in contravention of the provisions of The Securities Act (the "Act");
(B) Neither Friesen nor Futronics are registered under the Act to trade in securities in Manitoba;
(C) No prospectus, preliminary prospectus or notice of intention to trade pursuant to the exemptions in clause 91 of the Regulation to the Act has been filed with the Commission in respect of such trading activity, and no exemption order has been granted by the Commission, in respect of any of the trades in question in the securities of Futronics;
(D) Information has been received by staff of the Commission whereby Friesen has been and may continue to be promoting the trading of securities in Futronics through an arrangement described as a swap whereby, in exchange for an investor’s holdings in a locked in retirement account (LIRA), shares of Futronics are distributed to the investor and a loan is obtained for the investor based upon 60% of the value of their investment in Futronics.
(E) The Commission is of the opinion that in view of the foregoing it is in the public interest to make this order and that the holding of a hearing would cause a delay prejudicial to the public interest.
IT IS ORDERED:
1. THAT, pursuant to section 148 of the Act, all trading in the securities of Futronics shall cease forthwith.
2. THAT, pursuant to section 19(5) of the Act, forthwith:
(a) subsections 19(1) and 19(3) of the Act do not, with respect to such of the trades referred to in those subsections, apply to Friesen; and
(b) subsection 19(2) of the Act does not, with respect to such of the securities referred to in that subsection, apply to Friesen.
3. THAT, pursuant to sections 148 and 19(6) of the Act, this order shall expire on March 7th , 2002, unless extended by further order of the Commission.
BY ORDER OF THE COMMISSION
Director, Legal and Enforcement