I,m worried about current management being in control of our company/investment.This causes a grave concern for me, whereas these late filings below (see end of post),are, and perhaps offences, that may jeopardize or affect our company/investment in some way in the future, should this type of non compliance continue. Where I see a consistency in non compliance, I am unable to assure myself, that the last violation recorded by securities regulators, will be the last violation. I mean, how do I know, that if there is another non compliance by current management, or even Lori herself, that the securities will not take action and perhaps inadvertly harm investors by making the company SLI pay more fines or even be delisted? For the securities to leave someone at the helm of this company with a non compliance record as such, leaves me not only to question securities, but the Exchange as well, this in turn, has me questioning the safety and integrity of the whole markets. There is a degree of security to me, from the regulators/Exchange in their provisions/policies, that someone that does not have proper management skills or familiarity with securities laws, are not suitable as a director of any company on the exchanges. To see these laws not enforced, causes me concern going forward in any publicly listed company, in regards to the protection that I am assured under such provisions. Under the policies we are shown by the Exchange to protect investors, when I see little or no enforcement, I am left to wonder if ANY policy is enforseable and if the Securities and Exchange may be offering a false sense of security to the Canadian people, as well as any person around the world, that are invested in our Canadian based markets?

So, IMO, we investors see these violations by current/past management, and the feeling of being mislead or misrepresented by management, and it can easily create a mistrust. We investors are not doing a smear campaign, there is fact, as is shown in the violations, that we have grave concerns with management. We have recently found some things on Kulwant,our CFO, that may not be anything wrong, but without us investors knowing all the details on the questioning by the SEC in the U.S., with another company that Kulwant was involved with, and recently resigned as a director from, how are we to make a reasonable evaluation of him or his character? We have recently seen Tina resign from our company?We are only left with suspicion there as well, and unanswered questions.

We see management come out and launch a law suit against dissidents proclaiming a conspiracy, my God, doesn,t the facts warrant investors being disgruntled and gravely concerned? Any Judge or lawyer that would even support or condone such a case going forward, should be questioned, whereas their oaths suggest for them not to engage in such suits, especially when there is much public interest at stake.

We see this reprimand from years back on what we think may be Jeff, our IR guy at one time, and although people make mistakes, when a record is made, it is much different for one to compare it to a non record, when trying to discern the integrity of one. This reprimand of Jeff on his own, if it is him, is little, but when looked at in conjunction with the other violations of other management, I believe it becomes more important .

Firms, brokers fined $210,000

Saturday, August 2, 1997
VSE findings include 'deceptive and misleading trading patterns'

By JOHN SCHREINER - Vancouver Bureau Chief The Financial Post

Fines totalling $210,000 have been levied by the Vancouver Stock Exchange in a series of unrelated disciplinary actions against two member firms and several brokers.

Union Securities Ltd., a small Vancouver brokerage firm, was hit hardest, with a fine of $125,000 plus $25,000 for investigative costs.

The exchange found that Union had failed to supervise three of its brokers when it did not detect "deceptive and misleading trading patterns" between 1991 and 1994 in accounts the three operated.

One broker, David Gilbert, who remains under review by the VSE, was involved in executing about 300 third-party trades in two U.S. client accounts without written authorization.

One of the clients was said to be 95 years old and both the commissions generated and the cheques issued from the account greatly exceeded the client's net worth. The VSE says this account was "allegedly an undisclosed nominee account for a U.S. resident."

"Given the trading volume, concentration of securities and commissions generated in each of these accounts, Union failed to make any independent inquiries necessary to satisfy itself that it adequately knew its client in each case," the VSE said. "Union ... failed in its role as an industry gatekeeper."

Another Vancouver firm, Brink Hudson & Lefever Ltd., was fined $15,000 and one of its brokers, Raymond Richard Martin, was fined $5,000 in a related case involving trades in Merlin Resources Inc., either when the company was suspended or off the floor of the exchange in 1993 and 1994.

A fine of $40,000 was imposed against broker Jasvir Singh Rayat of Yorkton Securities Inc. The VSE found that from 1992 to 1995, Rayat let a third party make 840 trades in about 30 different companies without written authorization from any of the clients in whose accounts the trades were made. No fault was attributed to Yorkton.

Another Yorkton broker, David Alexander Walter Kuznecov, was fined $10,000 and suspended for 30 days for being involved in 1992 trading in shares of Caprice Greystoke Enterprises in three accounts, one of which belonged to Caprice president John Spector.

The exchange found that trades created an "artificial price" for the shares of Caprice. The VSE said Yorkton's role remains under review.

Broker Jeffrey Mark Ruskowsky, formerly employed both by Canaccord Capital Corp. and Georgia Pacific Securities Corp., was fined $15,000 and suspended for six years for several instances of discretionary trading without the client's written authorization.

Neither Gilbert, Martin nor Rayat was suspended.

Re: offence to file late