VANCOUVER, June 25 /CNW/ - A British Columbia Securities Commission panel has ordered sanctions against a technology company and its controlling shareholder that restrict their ability to trade securities and prevent the shareholder from participating in securities markets except for the purpose of operating the company.
On March 26, 2010, the panel found that Solara Technologies Inc. and William Dorn Beattie had illegally distributed securities when they claimed to use exemptions from securities laws for which they were not eligible. Solara and Beattie had raised $790,000 from 46 investors.
The panel found that Solara did not take sufficient care to ensure the requirements of the exemptions were met and did not keep appropriate records.
In ordering sanctions on June 23, 2010, the panel said, "This is not the standard of conduct we expect from issuers, or their officers or directors, when raising funds from the public."
The panel ordered Solara and Beattie to cease trading securities. The orders allow them to seek financing for Solara, provided they apply to the Commission for a variation order before selling securities.
Beattie's trading ban expires in five years. Until then, Beattie may trade for his own account through a registered dealer.
The panel ordered that for five years Beattie cannot act as a director or officer, act in a management or consulting role in the securities markets, or engage in investor relations activities.
The panel ordered that Beattie pay an administrative penalty of $50,000.
The orders allow Beattie to continue to operate Solara. The panel, noting that Solara appeared to be a legitimate business, said, "Beattie has always been the face of Solara and the driving force behind its activities, and is the one most knowledgeable of its affairs. We think that any prospect the current Solara shareholders have of recovering their investment could be put at risk were we to bar Beattie from continuing in a management role at Solara."
The B.C. Securities Commission is the independent provincial agency responsible for regulating trading in securities in the province. You can view the decision on our website www.bcsc.bc.ca by typing Solara or 2010 BCSSECOM 357 into the search box. If you have questions, contact Brenda-Lea Brown, media relations 604-899-6554.
Learn how to avoid investment fraud at the BCSC's investor education website: www.investright.org.
SOURCE British Columbia Securities Commission
For further information: For further information: Brenda Lea Brown, 604-899-6554 or (Canada) 1-800-373-6393