ASC orders more than $4.5 million in sanctions against Michaud, Whitelaw and Harris

CALGARY, May 16 /CNW/ - The Alberta Securities Commission (ASC) has imposed lengthy market bans against Paul Charles Whitelaw, Planned Legacies Inc. and David Edward Harris for illegally trading in and distributing Planned Legacies securities.  The ASC panel also sanctioned Whitelaw and Planned Legacies for making untrue statements to investors and sanctioned RightHedge Chrono-Logic Fund, Limited Partnership, RightHedge Investments, Inc., RightHedge Investments, LLC, Francois Michaud doing business as RightHedge Investments and Francois Michaud for illegally trading and distributing RightHedge Chrono-Logic Fund securities.

The ASC panel ordered that Michaud and the RightHedge entities individually or jointly disgorge $3,547,796, pay a $1 million administrative penalty and pay $26,000 in costs.

The panel ruled that this disgorgement order of more than $3.5 million dollars -- the amount retained by Michaud and the RightHedge entities -- is appropriate because "they obtained this money as a direct result of their non-compliance with the registration and prospectus requirements of the Act. The evidence suggests that the money was not used in the manner in which they told investors it would be used."

The ASC panel also ordered that:

  • Michaud and the RightHedge entities are permanently banned from trading in or purchasing securities; using Alberta securities laws exemptions; acting as a registrant, investment fund manager or promoter; and acting in a management or consultative capacity in connection with securities market activities. Michaud is also permanently banned from acting as a director or officer of any issuer, registrant or investment fund manager.
  • all trading in or purchasing of RightHedge Chrono-Logic Fund securities cease permanently.
  • Whitelaw is banned for 20 years from trading in or purchasing securities; using Alberta securities laws exemptions; acting as a director or officer of any issuer, registrant or investment fund manager; acting as a registrant, investment fund manager or promoter; and acting in a management or consultative capacity in connection with securities market activities. He must also pay a $50,000 administrative penalty and $16,000 in costs.
  • Harris is banned for 10 years from trading in or purchasing securities; using Alberta securities laws exemptions; acting as a registrant, investment fund manager or promoter; and acting in a management or consultative capacity in connection with securities market activities. He must also pay a $20,000 administrative penalty and $6,500 in costs.
  • all trading in or purchasing of Planned Legacies securities cease; Planned Legacies is banned from trading in or purchasing securities; and Planned Legacies is banned from using Alberta securities laws exemptions until the ASC's Executive Director issues a receipt for a prospectus for its securities.

A copy of the decision can be found on the ASC website at www.albertasecurities.com.

The ASC is the regulatory agency responsible for administering the province's securities laws. It is entrusted to foster a fair and efficient capital market in Alberta and to protect investors.  As a member of the Canadian Securities Administrators, the ASC works to improve, coordinate and harmonize the regulation of Canada's capital markets.

SOURCE Alberta Securities Commission

For further information:

For Media Inquiries:  Mark Dickey
  Senior Communications Advisor
  403.297.4481
   
For Investor Inquiries:  ASC Public Inquiries
  Toll Free 1.877.355.4488

 


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