VANCOUVER, June 26 /CNW/ - The British Columbia Securities Commission has
permanently banned a White Rock man from trading securities and fined him
$250,000 for contravening numerous sections of the Securities Act.
On April 25, 2007, a commission panel ruled that Brian David Anderson
perpetrated a fraud, made misrepresentations, and distributed securities
illegally in his efforts to promote two investments.
Anderson created and promoted Frontier Assets and the Alpha Program, both
of which were found to be fraudulent by the panel. He raised approximately
$14.7 million for the two investments from 352 investors, 57 of whom were
residents of B.C. There is no evidence to suggest this money will ever be
After receiving submissions regarding sanctions, the panel ordered
Anderson permanently banned from trading securities, holding a position as a
director or officer of any issuer, except in limited circumstances, and
engaging in investor relations. The panel also ordered Anderson to pay
$250,000, the maximum administrative penalty available under the Act at the
time of his misconduct.
Anderson told the panel in a letter that he was "unable to appear in
response" to the findings because he is incarcerated in a New York prison. He
also said he is not in a position to pay the fine.
The Commission responded by stating: "Anderson says that he is facing
bankruptcy and will therefore not be able to pay an administrative penalty.
However, for the purposes of general deterrence, it is appropriate to impose a
penalty to deter other market participants from similar wrongdoing."
The B.C. Securities Commission is the independent provincial government
agency responsible for regulating trading in securities within the province.
You may view the decision on our website www.bcsc.bc.ca by typing in the
search box, Brian David Anderson or 2007 BCSECCOM 350. If you have questions,
contact Ken Gracey, Media Relations, 604-899-6577.
For further information:
For further information: Ken Gracey, (604) 899-6577 or (B.C. & Alberta)