VSE halts Carter/Ward stocks until management changes made

A number of companies associated with promoters David Ward and Edward Carter have been halted by the Vancouver Stock Exchange until management changes are made. The VSE contends their continued association with the nine companies “would not be in the public interest.” The companies include: Flow Resources, High Rise Resources, Nu- Start Resource Corp., Longboat Resources, Bankit Resource Corp., Caliente Resources, Draw International Resources, Shallow Resources and Midnapore (1979) Resources.

After an 18-day trial which ended May 17, the Supreme Court of British Columbia ruled that Ward and Carter, with help from associates Carl Lazzell and Colin D. Carter, arranged to sell shares to United Services Group of Funds of San Antonio, Tex., from 3-way partnership accounts and other partnership accounts they maintained.

Justice Mary Southin said she was satisfied that Carter Sr, Colin Carter, Ward and Lazzell pre- arranged most, if not all, of the orders for shares of the United Services fund from the accounts. She also maintained that Ward used his connections with brokers to ensure the stocks closed at suitable prices and that Carter and Ward were guilty of undisclosed insider trading. Southin also claimed that all four individuals knew the Fund would suffer losses in the scam. Edward Carter and David Ward were assessed damages of $16 million in the civil lawsuit initiated by United Services Funds.