BCSC panel finds that five B.C. residents illegally distributed securities of two health drink producers and breached temporary order

VANCOUVER, July 7, 2015 /CNW/ - A British Columbia Securities Commission (BCSC) panel has found that Peter David Harris, Lorne Neil Cire, Christopher Andrew Burke, Millard Michael Kwasnek, Joseph Yvan JeanClaude Thibert (a.k.a. John Thibert,), Paradox Distributors (1992) Ltd., SPYru Inc., and U-GO Brands Nutritional Products Inc. illegally distributed the securities of SPYru and U-GO. The panel also found that Echo Partners Ltd., U-GO, Cire, and Kwasnek breached a temporary order issued by the Executive Director in February 2014.

SPYru was a company incorporated in the Turks and Caicos in October 2010 that purported to raise money to develop a health drink based on spirulina. It has never filed a prospectus in B.C. Harris, Cire, Klaus Guenther Glusing and his son, Mark Klaus Glusing, were directors of SPYru at various times. The Glusings are both deceased. 

U-GO is a British Columbia company that was incorporated in May 2013. U-GO is in the business of developing a health drink (different from that of SPYru) based on spirulina. Each of the individual respondents has been a director of U-GO since its incorporation. U-GO has never filed a prospectus in B.C.

In its decision, the panel made various findings of illegal distribution against the respondents:

  • SPYru breached securities laws regarding prospectus and registration requirements with respect to distributions of SPYru shares totaling $1,347,000;
  • U-GO breached securities laws regarding prospectus and registration requirements with respect to distributions of U-GO shares totaling $636,000;
  • Paradox, Cire and Harris breached securities laws regarding prospectus and registration requirements with respect to distributions totaling $834,000 of SPYru shares;
  • Cire breached securities laws regarding prospectus and registration requirements with respect to distributions totaling $27,500 of U-GO shares;
  • Kwasnek breached securities laws regarding prospectus and registration requirements with respect to distributions totaling $238,000 of SPYru shares and $366,000 of U-GO shares;
  • Thibert breached securities laws regarding prospectus and registration requirements with respect to distributions totaling $392,000 of SPYru shares and $27,500 of U-GO shares; and
  • Burke breached securities laws regarding prospectus and registration requirements with respect to distributions totaling $65,000 with respect to SPYru shares and $51,000 of U-GO shares.

The panel also found that each of Harris and Cire, as directors of SPYru, is liable under the Securities Act for the illegal distributions by SPYru, and that each of Harris, Cire, Kwasnek, Thibert, and Burke, as directors of U-GO, is liable for the illegal distributions by U-GO. In addition, the panel found that each of U-GO and Harris is liable with respect to false information contained in four Exempt Distribution Reports filed by U-GO, and that each of Echo, U-GO, Cire, and Kwasnek contravened the Executive Director's Temporary Order.

The panel dismissed allegations pertaining to fraud and misrepresentations, and declined the Executive Director's request to make additional orders in the public interest.

The panel directed the parties to make submissions on sanctions according to the schedule set out in the findings.

You may view the findings decision on our website www.bcsc.bc.ca by typing Peter David Harris, Lorne Neil Cire, Christopher Andrew Burke, Millard Michael Kwasnek, Joseph Yvan JeanClaude Thibert, (or John Thibert,), Paradox Distributors (1992) Ltd., SPYru Inc., U-GO Brands Nutritional Products Inc., or 2015 BCSECCOM 277 in the search box. Information regarding 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 (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, mediarelations@bcsc.bc.ca; Public inquiries: 604-899-6854 or 1-800-373-6393 (toll free), inquiries@bcsc.bc.ca

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