Investment Scheme Leaves Shattered Dreams in Its Wake Graduation
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April 27, 2005 The Valley Voice Volume 14, Number 11 June 8, 2005 Delivered to every home between Edgewood, Kaslo & South Slocan. Published bi-weekly. “Your independently-owned regional community newspaper serving the Arrow Lakes, Slocan & North Kootenay Lake Valleys.” Investment scheme leaves shattered dreams in its wake by Jan McMurray record, so he joined the pool. So did focusing only on collecting names of It also says that because of the people acting as his “agent, successor, NEW DENVER — An his father Wally, and about 200 others all the participants. complaint, the Court has issued assign or attorney.” Turner said he apparently fraudulent investment over the approximately three years. “We’re starting the investigation Steele with a restraining order and did not know if David Fulkco was scheme has affected our area in a very Turner says that this case is here. If it requires going to a more asset freeze. The court order considered one of these or if he had big way. unusual because victims of fraud are specialized department, we will look schedules a status hearing for June been given that order. Of the estimated 205 people who usually people who have money, but at it. It is big and far reaching,” he 6. The CFTC complaint charges invested in the scheme, the majority in this case, “there are a lot of sad said. He asks everyone affected, from Rosemary Hollinger, Associate Steele with Fraud by are from this region — between stories.” The Valley Voice has talked near and far, to contact him and quote Director and Regional Counsel, Misrepresentation, Fraud by a Nakusp and Castlegar, with most to people who mortgaged their file #2005-2062. Later, he said, police CFTC Division of Enforcement, Commodity Pool Operator and from the New Denver area. There are homes, cashed in RRSPs and maxed may hand out a questionnaire to all reported on the outcome of the status Failure to register as a Commodity also participants from US, Germany, out their credit cards to join the pool. participants and ask them to provide hearing. “The Judge said we have Pool Operator, which are all Italy, Japan and Greece. Turner said it was really hard on copies of all the documentation they service of process established and the violations of the US Commodity The scheme came to the area via the Fulkco family. “Wally thought he had for their investments. Commission has to give him a draft Exchange Act and Commission David Fulkco, son of long-time New was doing something wonderful for A CFTC press release gives order on Thursday, June 9. There will Regulations. CFTC believes that Denver resident Wally Fulkco. the community and it turned out that notice that the CFTC has submitted be a hearing on the injunction on Steele is a 33-year-old Canadian Howard Turner, a friend of the he probably hurt everybody, so he a complaint against Steele to the US Monday, June 13.” citizen who resides in San Luis Fulkcos and one of the investors in was devastated by the news,” he said. District Court for the Northern The court’s restraining order and Potosi, Mexico and maintains a the scheme, is acting as spokesperson Earlier on, investors were District of Illinois, Eastern Division. asset freeze pertains to Steele and to mailing address in Vancouver. for the Fulkco family. required to put in at least $5,000, “We have no idea what the Turner said, but more recently, they Graduation ceremonies in the Slocan Valley chances are of people getting their were asked for a minimum of money back,” said Turner. “We don’t $25,000. know how much Steele might have The whole thing was blown open in Canadian bank accounts and assets about May 19 when an investor from — all we can do is hope.” this area, who Turner would not The US Commodity Futures name, made inquiries about an Trading Commission (CFTC), in its account statement he received from complaint against Steele that led to a Steele in May 2005. The statement court order against him, says that had supposedly been issued by a Steele accepted at least $7.5 million futures broker. The local investor from at least 200 customers for his contacted the futures broker, which investment pool. He claimed that found that the statement was false — investors would earn 8-10% per that the account had never been month on their investments and funded and was closed, and the firm provided false statements showing had never opened an account in the high returns. Turner said he did not name of the investor. know how much money was invested On May 20, the Friday of the from the local community, but that May long weekend, Steele admitted Steele had claimed he was trading to David Fulkco that the account with $14 million “but you can’t statement he gave him in May 2005 believe anything he said.” falsely represented that the value of The CFTC complaint says that the pool was over $17 million and Steele had two accounts at a futures that he had lost almost all of the pool’s broker, which has an office in funds. Chicago. One account was not very Turner says that David was given active. The other, where local funds the bad news while he was enroute were being wired, never contained to New Denver for the long weekend more than about $4 million and and that David contacted CFTC, incurred losses totalling over $3 which is investigating the scam, million during the relevant period. immediately from his motel room. The complaint explains that “We didn’t want to spoil people’s David Fulkco had people wire funds May Days weekend,” said Turner, so to a bank account in the name of right after the weekend, he started Abriel Asset Management, and notifying people. “I must have made Fulkco then wired the funds to 50 phone calls to people and broke Steele’s account with the futures the news. Then it spread by word of broker in Chicago. Turner said the mouth. Wally had a lot of cheques Abriel account was David’s and that that people had given him to join the it was being used only for the purpose pool. They were returned and the of the investment pool at the time. people were told he was not accepting Turner said that David believed them because of a problem with the that the plan was that he and Steele account. Wally was in no condition were going to form a company with to talk to people.” the profits from the pool to diversify On June 6, Turner and his wife the assets — “to get into real estate sent letters to the 205 participants, and other things, but Kevin kept advising them to contact Cpl. Kerry Joe Irving proves that it’s never too late to get a high-school diploma. The 93-year-old received an honourary Heidema at the Slocan Lake RCMP putting it off. degree at the Mount Sentinel Graduation, June 3, 2005. More grad coverage inside - pages 9-12. “The whole thing was based on detachment, the BC Securities trust. They’d known each other for Commission and the US CFTC. KSCU robbers charged in Kamloops Court quite a while.” “It will be up to the individuals by Jan McMurray robbery as well as several other jail and Bystrom to 5 years jail and He said that David, who now to get information to each of the three NEW DENVER—Two people robberies in Kamloops, Princeton, an order for DNA at Kamloops lives in Victoria, met Kevin J. Steele organizations,” said Turner. “We are have pled guilty to robbing New Revelstoke and Salmon Arm. Provincial Court on May 24. at university. About three years ago, also asking them to write a personal Denver’s Kootenay Savings Credit Bystrom was also charged in the New Of the 13 counts of robbery, the David was told that Steele was impact letter — stories of how this Union on December 29 last year. Denver case with assault, and majority were against Bystrom. All making good profits on the has affected them emotionally and Shawn Douglas Bystrom and wearing a disguise during the the robberies occurred in late commodities market. David watched financially.” Jennifer Marie Marlatt were both commission of an indictable offence. December 2004 and early January him and was impressed with his track Heidema said for now he was charged with the New Denver Marlatt was sentenced to 18 months 2005. COUNTRY FURNITURE & HOME DECOR Looking for something out of the ordinary? Country Furniture & Home Decor, 476 Baker St. Nelson, Toll-Free 1-866-352-3665 2 NEWS The Valley Voice April 27, 2005 KDCFS board schedules meeting to deal with petitions and AGM by Jan McMurray advertised by members for the April of the Society until just the night bottom line for me is this: either the along. What’s more basic than The Kaslo and District 9 AGM on the following contentious before, when the board removed her community wants the Society or it letting the membership vote on Community Forest Society issues: appointed directorships, from that executive position at a doesn’t... something? If he [Cockrell] wants (KDCFS) board has made an terms of directors, restoring the special meeting. He did not have the “There’s only one way to get meeting to be successful, a ambitious move and scheduled its water monitoring program and chance to put forward his motion — through another meeting — if the parliamentarian who is acceptable AGM for 6:30 pm on June 15, to be President Gary Cockrell’s Cockrell ruled him out of order, community shows up and tells them to both sides should be there.” followed by a requisitioned meeting resignation.