VANCOUVER, Aug. 25, 2015 /CNW/ - The Executive Director of the British Columbia Securities Commission (BCSC) has issued a notice of hearing alleging that a B.C. company and a former dealing representative sold securities in breach of securities laws.
The notice alleges that in early 2013, the President of Havenplex Holdings Ltd. told Patrick Aaron Dunn that he was looking for someone to raise money for Havenplex. Havenplex was seeking financing to build Cherrywood Estates, a seniors' housing complex in Creston, B.C. Cherrywood Estates was Havenplex's only project.
Dunn, who was a dealing representative with League Investment Services Inc. (LISI) at the time, offered to help. While still employed at LISI, Dunn signed a partnership agreement that stated Dunn would be solely in charge of raising L.C. (line of credit) and equity investment monies for Havenplex, and would see to it that Havenplex's affairs were compliant with B.C.'s securities laws.
In October of 2013, Dunn raised $5,000 for Havenplex by selling a promissory note to an investor. Also in October of 2013, LISI terminated Dunn's employment. After his termination, Dunn sold a Havenplex promissory note to another investor for $50,000. Havenplex compensated Dunn for his efforts.
In February of 2014, the second investor invested a further $50,000 in Havenplex, dealing exclusively with Havenplex's President in relation to this investment. Dunn was not involved in the transaction.
Staff maintains that neither investor qualified for exemptions under the Securities Act. As such, the distributions to both investors were in breach of securities laws regarding prospectus and registration requirements.
These allegations have not been proven. Counsel for the Executive Director will apply to set dates for a hearing into the allegations before a panel of commissioners on September 22, 2015 at 9:00 a.m.
You may view the notice of hearing on our website, www.bcsc.bc.ca, by typing Havenplex Holdings Ltd., Patrick Aaron Dunn, or 2015 BCSECCOM 320 in the search box. Information about disciplinary proceedings can be found in the Enforcement section of the BCSC website.
Please visit the Canadian Securities Administrators' Disciplined Persons List for information relating to persons disciplined by provincial securities regulators, the Investment Industry Regulatory Organization of Canada (IIROC) and the Mutual Fund Dealers Association of Canada (MFDA).
About the British Columbia Securities Commission (www.bcsc.bc.ca)
The British Columbia Securities Commission is the independent provincial government agency responsible for regulating capital markets in British Columbia through the administration of the Securities Act. Our mission is to protect and promote the public interest by fostering:
- A securities market that is fair and warrants public confidence
- A dynamic and competitive securities industry that provides investment opportunities and access to capital
Learn how to protect yourself and become a more informed investor at www.investright.org
SOURCE British Columbia Securities Commission
For further information: Media Contact: Richard Gilhooley, Media Relations, 604-899-6713; Public inquiries: 604-899-6854 or 1-800-373-6393 (toll free)