MARKET SCAMS

[sarals]

An example of a real scam... BOYI

Article from the Edmonton Journal (www.edmontonjournal.com - search on Boyle)

Brothers in contempt for 'evasive' testimony
Investors' lawsuit cites $1.5M in losses
Paul Marck, Journal Business Writer
The Edmonton Journal

In an unusual move, a Court of Queen's Bench justice has ordered two brothers from Vancouver jailed 10 days each for contempt.

Madame Justice Joanne Veit made the ruling Friday against Kevin Boyle, 34, and Jason Boyle, 26, both formerly of Edmonton.

The Boyles, along with brother Brian, 31, are the subject of civil proceedings that have carried on for two years after investors allegedly lost a total of $1.5 million they had placed with the Boyles and their associated companies.

In her ruling, Veit found the Boyles guilty of contempt at several points during the trial.

The jail term was handed down in connection with case proceedings from Sept. 30, 1999. Veit has also given Kevin and Jason Boyle a deadline of June 30 to purge their contempt from two related matters.

In the ruling, Veit said the Boyles were being sentenced to jail "for failing to have given meaningful answer to questions put to them on examination. ..."

In fact, she wrote: "There is not much tangible evidence that the Boyles have in fact made serious efforts to provide meaningful answers." Instead, the Boyles' responses were "evasive, incomplete and obstructionist."

Evidence at the lengthy trial showed that on many occasions, Kevin and Jason Boyle failed to provide details of their personal and corporate finances, despite being given ample time and opportunity to obtain records and information.

"However, by effectively stonewalling the investors, by maintaining they are unable to provide any information from Boyle International ... or how they could afford to pay lawyers hundreds of thousands of dollars, they have essentially denied to the investors even a shred of useful information," the ruling said.

Veit said it would not be useful to fine the Boyles any amount because proceeds would be paid to the court and not investors.

However, it's unlikely that either Kevin or Jason Boyle will be arrested and returned from their Vancouver homes to serve their jail time.

Instead, they'll likely be handcuffed once they return to court in Edmonton. Veit said in her ruling that she will take further action on the other contempt charges July 13, unless the Boyles purge those counts by June 30.

At one point, the Boyles agreed to an arrangement with the court to pay back investors a total of $900,000 over five years. The monthly payments, totalling $17,000 to several investors, stopped earlier this year.

The Boyles are also subject to separate proceedings for alleged violations of the Alberta Securities Act in connection with investments made in their companies.

Lawyer Karl Wilberg, who acted for the brothers on the contempt charge and for Kevin Boyle in the securities proceedings, declined comment.