CANADA - Alleged boiler-room operator used Hells Angels connection to promote his rock band

OFF THE WIRE
The trial of Adis (Ady) Golic, leader of the hard-rock biker band Skard, is slated to resume on Aug. 23 in Vancouver Provincial Court.

Golic is charged with illegally selling shares of AD Capital U.S. Inc., which was purportedly developing new muffler technology, through a boiler room in Burnaby. He is also charged with misrepresenting the commercial prospects of that company.

Golic is a relative unknown in the securities market. I was able to glean some biographical information from the Burnaby Now, which published a feature article on him in March this year.

The Bosnian native told the newspaper that in 1994, when he was 19 years old, he was thrown into a concentration camp and imprisoned for 14 months.

He said a Canadian battalion eventually rescued him. In particular, he recalled being helped by a Canadian soldier named Andre Lemay.

In 1995, Golic moved to Canada and settled in Burnaby. He got a job fixing vending machines and in 2001 he formed Skard. "He's been playing guitar for the band ever since," the newspaper reported.




Quite by accident, Golic ran into Lemay in Langley about three years ago and renewed their friendship. When Golic learned that Lemay's daughter had a congenital heart defect, he held a series of benefit concerts and other fundraising initiatives.

A heartwarming story, for sure. But the article neglected to mention two aspects of Golic's life that are not so warm and fuzzy.

One is his association with the Hells Angels. Skard's music videos and promotional materials have a heavy biker theme. One of the band's videos, entitled On the Highway, shows Golic on a chopper being tailed by a police cruiser.

The video also features several Hells Angels, most notably John Bryce, president of the East End chapter of the Hells Angels, and Vince Brienza, a former member of the East End chapter and now a member of the Haney chapter.

The other less-endearing aspect of Golic's life is his securities problems.

They started in May 2008, when BCSC investigators -assisted by RCMP officers -raided Golic's office at 6929 Royal Oak Ave. and found 10 phoners selling AD Capital stock, which traded on the lowly Pink Sheets in the United States.

They alleged the phoners told prospective investors that AD Capital was developing muffler technology that would reduce automobile emissions by 97 per cent, and that the company was doing so well it had to turn down offers of capital, and was making plans to list its shares on the Toronto Stock Exchange.

They also alleged the phoners had "call scripts" and "call sheets" listing the names and phone numbers of prospective investors, with handwritten notations such as "1,000 shares booked" and "closed."

Usually, the commission takes these sorts of cases before BCSC hearing panels, which can bar offenders from the securities market and assess financial penalties, but cannot impose jail sentences.

In this case, BCSC enforcement staff asked Crown counsel to lay charges under the Securities Act and take the matter to criminal court, where jail sentences can be imposed.

The trial before Judge Joseph Galati started June 6. Crown prosecutor Mark Canofari alleged Golic illegally raised just under $600,000.

A BCSC undercover investigator testified that she bought $1,300 worth of AD Capital shares over the phone. She then received a return call advising that the minimum investment was $2,000.

She said she agreed to send her "husband," who was actually a BCSC staff member, to the office. He took along his "friend," who was actually the commission's manager of criminal investigations. They testified that they handed Golic a cheque for $700 and listened for about an hour while he promoted the company.

An elderly couple -both retired teachers in their 80s -testified that Golic went to their home on several occasions and persuaded them to give him a total of $90,000, ostensibly for investment in AD Capital shares.

The husband said Golic subsequently showed up at their house and told them the money they had invested was at risk, but if they gave him another $30,000 he would invest it separately and return all their money.

The husband said that was all the money they had left, but he agreed and Golic actually walked him to the bank to get a draft. He tearfully recalled that Golic later confessed he had not invested the money as he said he would; rather, he had used it to pay his legal fees.

Court also heard evidence indicating that some of the couple's money may have been used to fund Golic's music business. On one occasion, the couple gave Golic $10,000 to buy shares. Days later, Golic wrote a cheque for an identical amount to Digital Interference, which produced the On the Highway video.

As for the company's muffler's technology, an expert witness testified it didn't work.

The trial was interrupted after five days due to the shortage of sheriffs. It is set to resume on Aug. 23, when defence lawyer Greg DelBigio is expected to present his case.BAines©vancouversun.com

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