CALGARY, Nov. 17, 2015 /CNW/ - On November 13, 2015, Alberta Court of Queen's Bench Justice D.K. Miller granted an appeal filed by the Alberta Securities Commission (ASC) with respect to charges against three Lethbridge-area men.
In February 2013, Rand Tyler Stevenson and Brent Ray Derricott were charged under the Alberta Securities Act for making misleading or untrue statements to investors and trading in OCI Q Corp. securities without registration or a prospectus. Robert Michael Smylski was also charged with trading in OCI Q Corp. securities without a prospectus and for breaching prior ASC orders prohibiting him from trading securities in Alberta.
The men raised money through loan agreements between OCI Q Corp. and 24 Alberta investors, which promised returns from four to 200 times their investment. The funds were purportedly to be used to help a poor Filipino fisherman probate his late aunt's massive estate, which was possibly worth billions of dollars. She had allegedly accumulated this wealth while in the employ of former Philippine dictator, Ferdinand Marcos.
After the conclusion of a trial earlier this year, the Provincial Court of Alberta had dismissed all of the charges, primarily based on its finding that the loan agreements were "private transactions" and not "securities" as defined in the Securities Act. The ASC filed an appeal of that decision, arguing that the Provincial Court judge had erred in law.
Relying upon Supreme Court of Canada authority that, "substance, not form, is the governing factor" and that securities legislation must be construed broadly because it is intended to protect investors and the capital markets, the Court of Queen's Bench agreed with the ASC and entered convictions against Stevenson, Derricott and Smylski. Justice Miller stated, "By classifying the Loan Agreements as private transactions they are not necessarily taken outside of the security legislation." He also noted that language in the loan agreements stating they were not subject to securities laws was not determinative.
The matter is now set for an appearance on Tuesday, December 1, 2015, at which time a date for sentencing by the Provincial Court will be set.
A copy of the decision is available 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 with fostering a fair and efficient capital market in Alberta and with protecting investors. As a member of the Canadian Securities Administrators, the ASC works to improve, coordinate and harmonize the regulation of Canada's capital markets.
SOURCE Alberta Securities Commission
For further information: For Media Inquiries: Mark Dickey, Senior Communications Advisor, 403.297.4481; For Investor Inquiries: ASC Public Inquiries, Toll Free 1.877.355.4488