E-Division File: 2006-0056

RCMP Probing Offshore Accounts in Vancouver Market

Vancouver, B.C. – August 5, 2006

The Vancouver
Integrated Market Enforcement Team (“IMET”) is interviewing a significant number of Vancouver-area residents identified as the beneficial owners of securities accounts at a brokerage firm located in a Caribbean jurisdiction.

As part of a complex national and international investigation led by the Moncton, New Brunswick
Integrated Proceeds of Crime Unit, the RCMP came into possession of approximately 65 bankers’ boxes of records from a brokerage firm located in an offshore jurisdiction. A large number of the records relate to accounts held on behalf of Vancouver residents, many of whom have links to the securities industry, or traded in United States or Canadian securities.

Use of secret offshore accounts facilitates abusive trading practices, including insider trading, wash trading and illegal distributions, and ultimately undermines confidence in Canadian capital markets. The investigation is being undertaken to determine if the account holders complied with Canadian criminal, securities and tax laws.

Because this is an ongoing investigation, the manner in which the records were acquired, the name of the offshore brokerage firm and its location can not be disclosed.


Backgrounder: Integrated Market Enforcement Teams (IMETs)

The IMETs are a group of highly specialized investigators and support staff dedicated to ensuring that those who commit capital markets fraud offences will be detected, charged and prosecuted in an effective and timely fashion.

The Vancouver IMET is comprised of RCMP, Vancouver Police Department, British Columbia Securities Commission and Canada Revenue Agency investigators, Department of Justice Canada legal advisors, a forensic accountant and specialized support staff.

The objective of the IMETs is to enhance the protection of Canada’s capital markets and publicly traded companies and ensure investor confidence in their efficient functioning in order to maintain Canada’s competitiveness with other countries.


Backgrounder: Canada Revenue Agency’s Voluntary Disclosure Program

Canada Revenue Agency’s Voluntary Disclosure Program allows clients to come forward and correct inaccurate or incomplete information or disclose material they did not report during previous dealings with the Canada Revenue Agency, without penalty or prosecution. All information provided to the Canada Revenue Agency through the Voluntary Disclosures Program is confidential. This disclosure must occur prior to any action or investigation initiated by Canada Revenue Agency. For more information on the program, please go to
Voluntary Disclosures Program


Backgrounder: Definition: “Wash Trading”
"Wash trading" is the common term for a securities trade that involves no change in beneficial ownership. Such trades are prohibited by section 382 of the Criminal Code.


Integrated Market Enforcement Team
2200 - 401 W Georgia St.
Vancouver, B.C.
V6B 5A1

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