CALGARY, Feb. 26 /CNW/ - The Alberta Court of Appeal has upheld an
Alberta Securities Commission (ASC) decision against Edmonton businessman
Lambert "Bert" Lavallee relating to illegal trades and illegal distributions
of KCP Innovative Services Inc. securities to Alberta investors. In dismissing
the appeal, the Alberta Court of Appeal concluded that the ASC decision "was
based upon the aggregate of the evidence and was supported by the evidence as
a whole. It is entitled to appellate deference."
The Alberta Court of Appeal ruling upholds a February 2008 ASC order that
imposed a five-year cease trade, denial of exemptions and director or officer
ban against Lavallee. The ASC also ordered Lavallee to pay a $20,000
administrative penalty and $10,000 in costs.
In October 2007, an ASC panel found that Lavallee, a founder and
significant shareholder of KCP Innovative Services, was an active participant
in the illegal distribution of KCP Innovative Services shares that raised
roughly $1.5 million from over 100 Alberta residents between January and
September of 2004. The ASC panel determined that Lavallee "abused the
accredited investor exemption and, in so doing, participated actively in
illegal distributions." The ASC panel noted that Lavallee "capitalized on the
willingness of investors to be a party to that abuse and to hand over their
money without benefit of the protections they should have been afforded under
Alberta securities laws."
A copy of the Alberta Court of Appeal decision can be found on the
Alberta courts website at www.albertacourts.ab.ca.
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; For Investor Inquiries: ASC Public
Inquiries, Toll Free 1-877-355-4488