VANCOUVER, May 29 /CNW/ - The British Columbia Securities Commission has
settled with the former CEO and president of a Richmond-based medical device
company who admitted to illegally distributing securities to investors.
In the settlement agreement, James Richard Elliot, the former CEO and
president of MDMI Technologies Inc. (MDMI), admitted to holding presentations
and investor meetings, marketing the shares of MDMI, and raising approximately
$2.3 million from 262 B.C. investors.
Approximately 259 of the investors did not qualify for the "friends and
family" exemption from B.C. securities laws that Elliot relied upon to sell
the securities. Elliot violated securities laws when he sold investors the
securities without being registered or filing a prospectus.
As part of his settlement agreement, Elliot is prohibited, for five
years, from trading or purchasing securities, except in limited circumstances.
He also cannot become or act as a director or officer, act as a manager or
consultant in matters related to securities markets, or engage in investor
relations for five years. Elliot must also complete a course concerning the
duties and responsibilities of directors and officers.
The executive director issued a notice of hearing in August 2007 that set
out allegations against MDMI and Elliot, with respect to the distribution of
its securities.
The executive director cease-traded the securities of MDMI in June 2005
for failing to file distribution reports. The BCSC settled with MDMI in May
2008 and lifted the cease trade order on the company's securities.
Elliot has no prospect of paying the $70,000 fine the executive director
would have assessed in the public interest.
The B.C. Securities Commission is the independent provincial government
agency responsible for regulating trading in securities within the province.
You may view the settlement on our website www.bcsc.bc.ca by typing in the
search box, James Richard Elliot or 2008 BCSECCOM 281. If you have questions,
contact Ken Gracey, Media Relations, 604-899-6577.
Learn how to avoid investment fraud at the BCSC's investor education
website: www.investright.org.
For further information: Ken Gracey, (604) 899-6577 or (B.C. & Alberta)
1-800-373-6393
