Alberta Court of Appeal Upholds ASC Decision to Sanction Fraudsters



    CALGARY, Oct. 8 /CNW/ - The Alberta Court of Appeal has issued Reasons
for Judgement for its September 11, 2008 dismissal of appeals of two Alberta
Securities Commission (ASC) decisions by Capital Alternatives Inc., Milowe
Brost, Edna Forrest, Bradley Regier, Carol Weeks and Strategic Metals Corp.
    The Court of Appeal upheld the ASC findings, ruling among other things
that based on the evidence it was reasonable for the ASC to conclude that each
of the appellants engaged in conduct that amounted to regulatory fraud and
that "Brost was responsible for making false or misleading statements to, and
participating in a fraud on, investors."
    In a February 16, 2007 decision, an ASC panel determined that the
appellants engaged in a fraud on investors when they illegally sold Strategic
Metals securities, raising $24.6 million from Alberta investors. In its July
10, 2007 sanction decision, the ASC panel concluded that Brost was at the
centre of this fraudulent scheme and that the Alberta capital market and
investors were at risk if there was any prospect of Brost regaining access to
the capital market.
    As a result Brost was permanently banned from trading, permanently banned
from becoming or acting as a director or officer of any issuer, and ordered to
pay a $650,000 administrative penalty. This is the largest administrative
penalty imposed upon an individual by the ASC and one of the largest in
Canada.
    Other sanctions issued by the ASC panel include: a permanent market ban
and $200,000 administrative penalty against Capital Alternatives; a permanent
director ban, 20-year trading and exemption bans and a $200,000 administrative
penalty against both Edna Forrest and Bradley Regier; and a 15-year director,
trading and exemption ban, and a $65,000 administrative penalty against Carol
Weeks.
    Costs of the investigation and hearing of approximately $130,000 were
also ordered against the appellants.

    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.





For further information:

For further information: For Media Inquiries: Mark Dickey, Senior
Communications Advisor, (403) 297-4481, media@seccom.ab.ca; For Investor
Inquiries: ASC Public Inquiries, Toll Free 1-877-355-4488


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