CALGARY, Oct. 26 /CNW/ - The Alberta Securities Commission (ASC) has banned Edmonton-area businessman James Woodrow Baker from acting as a director or officer of any issuer for five years for his role in illegal sales of KCP Innovative Services Inc. securities. An ASC panel also ordered Baker to pay an administrative penalty of $15,000 and $9,000 in costs. KCP Innovative Services was ordered to cease trading in securities and denied the use of Alberta securities laws exemptions until it files a prospectus with the ASC. It must also pay $11,000 in costs.
The ASC panel found that Baker, a director and senior officer of KCP Innovative Services, was the guiding mind in sales of KCP Innovative Services securities and some were sold to unqualified investors. The panel stated that due to KCP Innovative Services' and Baker's misconduct "some Alberta investors in KCP were solicited to invest without due regard for their financial circumstances, investment objectives or risk tolerances, which certainly exposed them to the risk of financial harm."
The panel also noted that KCP Innovative Services and Baker obtained legal advice regarding raising money in the exempt market, but "failed to implement reasonable measures aimed at translating this sound legal advice into practice by the KCP agents at the forefront of KCP's money-raising efforts."
A copy of this decision is available 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 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