ASC finds individuals associated with Concrete Equities illegally sold securities and misled investors

CALGARY, Sept. 27, 2011 /CNW/ - The Alberta Securities Commission (ASC) has made the following findings in the Concrete Equities Inc. matter:

  • Varun Vinny Aurora, David Humeniuk, David Jones and Vincenzo De Palma are responsible for illegal sales of securities issued by various entities associated with Concrete Equities; and
  • Aurora, Humeniuk and Jones made untrue or misleading statements to investors.

The untrue or misleading statements made by Aurora, Humeniuk and Jones included telling investors that no commissions would be paid and overstating the purchase price of the properties to be acquired.

Aurora, Humeniuk, Jones and De Palma purported to rely on the offering memorandum exemption from the registration and prospectus requirements under Alberta securities laws.  The ASC panel found that the offering memoranda provided to investors for certain of the securities illegally sold were "gravely deficient in material respects" and that: "Not only the letter, but the very spirit, of the offering memorandum exemption was flouted."

In addition, the ASC panel found it "self-evident" that the contraventions of Aurora, Humeniuk, Jones and De Palma were contrary to the public interest. The panel ruled: "Their consequence was that investors were deprived of some of the fundamental protections to which they were entitled under the Act. Had they been given a prospectus, and had they been afforded the benefit of the involvement of a registered salesperson knowledgeable about securities, capital markets and the investors themselves, and minded to steer them only to investments suitable for their circumstances, the losses we heard of - and the sometimes heartrending effects on lives and families - might have been avoided."

As for the investments themselves, the ASC panel noted: "The Concrete Group operation as a whole seems from the evidence in its entirety to have been an accident waiting to happen, the scale of the wreckage perhaps only accelerated and amplified by the economic downturn of 2008."

The ASC panel has set dates in October and November 2011 for ASC staff and Aurora, Humeniuk, Jones and De Palma to provide submissions on what, if any, orders for sanctions and costs the panel ought to make.

A copy of the decision is posted 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:  Lorinda Brinton
  Senior Communications Advisor
  403.297.2665
   
For Investor Inquiries:  ASC Public Inquiries
  Toll Free 1.877.355.4488

 


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