CALGARY, Nov. 9 /CNW/ - The Alberta Securities Commission (ASC) has
ordered a 20-year market ban against an Ontario resident for his role in
illegally raising $2.7 million from more than 500 Alberta investors. The ASC
panel banned Al Grossman (also known as Abraham Herbert Grossman and
Allen Grossman) from trading in the Alberta capital market, using Alberta
securities laws exemptions or acting as a director or officer of any issuer,
for 20 years. The panel also ordered Grossman to pay an administrative penalty
of $250,000 and $40,000 in costs.
The ASC panel found that between September 2004 and January 2006,
Grossman, president of Maitland Capital Ltd., and Maitland salespersons cold
called investors in several Canadian provinces to encourage them to purchase
Maitland Capital common shares. Grossman and the salespersons were not
registered to do so in Alberta. The panel also determined that Grossman made
misrepresentations to Maitland investors and made false statements to an ASC
investigator. From the evidence submitted, the panel concluded that all funds
invested in Maitland Capital have been lost and that investors have been left
with unsaleable securities.
As a result of Grossman's "multiple serious contraventions of or failures
to comply with Alberta securities laws and his serious, at times egregious,
conduct contrary to the public interest - and his troubling failure to
recognize the seriousness of his misconduct," the panel determined that he
would pose a risk to Alberta investors if his future access to the market was
The ASC panel also ordered Ron Gardner (also known as Ron Garner), a
Maitland salesperson, to pay a $15,000 administrative penalty and cease
trading or using securities exemptions for five years. Other Maitland
salespeople, William Rouse, Dianna Cassidy and Robert Geller, were ordered to
pay $10,000 each in administrative penalties and cease trading or using
exemptions for three years. The panel also prohibited the trade of Maitland
Capital Ltd. securities until a prospectus is filed with the ASC. The ASC
panel ordered Maitland and the salespeople to pay a total of $24,000 in costs.
A copy of the first and second part of the decision in its entirety 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.
For further information:
For further information: For Media Inquiries: Mark Dickey, Senior
Communications Advisor, (403) 297-4481, firstname.lastname@example.org; For Investor
Inquiries: ASC Public Inquiries, Toll Free 1-877-355-4488