Alberta Court of Appeal upholds ASC decision and dismisses appeal by Synergy Group (2000) Inc.

CALGARY, June 29, 2011 /CNW/ - The Alberta Court of Appeal has released reasons for its decision to dismiss an appeal by Ontario-based Synergy Group (2000) Inc. relating to an April 22, 2010 Alberta Securities Commission (ASC) decision. The Court of Appeal upheld ASC findings that Synergy Group engaged in illegal trades and distributions of securities in a tax reduction program offered by Synergy Group.

The Court of Appeal dismissed all Synergy Group's grounds of appeal, including an argument that units which generated tax losses for investors were not "profits" or securities within the meaning of Alberta securities laws. In finding that the units were securities, the Court held that securities legislation is to be construed broadly in the context of economic realities and that substance, not form, should govern. It also noted that persons trading in securities should not be allowed to avoid the reach of the Securities Act by providing minimal documentation for a transaction.

Synergy Group (2000) Inc. continues to be subject to an ASC order that prohibits it from trading in securities until the Executive Director of the ASC issues a receipt for a prospectus in any securities Synergy Group seeks to trade.

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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