VANCOUVER, Dec. 14, 2012 /CNW/ - The executive director of the British Columbia Securities Commission has
issued a notice of hearing alleging that a former investment advisor
distributed securities without being registered and without having
filed a prospectus.
The notice alleges that Robert Waters, a B.C. resident, promoted
securities in Berkeley Coffee and Tea Inc. in anticipation of future
compensation from the company. Waters was formally registered under the
Act as an investment advisor from March 6, 1985, to September 9, 1998.
The notice states that on April 1, 2011, Berkeley distributed shares to
59 investors, raising a total of approximately CAD $474,590.00. Waters
was responsible for 45 of the investors, for proceeds totalling
approximately CAD $312,976.70. Berkeley, an Over-the-Counter reporting
issuer in B.C., had previously filed a prospectus with the U.S.
Securities and Exchange Commission, but never in B.C.
On May 6, 2011, Berkeley filed an exempt distribution report with the
BCSC, claiming the securities had been sold under the family, friends
and close business associates exemption. As Waters has never been a
director, officer, or founder of Berkeley, none of the investors for
whom Waters was responsible qualified for an exemption.
BCSC staff contend that by distributing shares without a prospectus and
without being registered, Waters breached securities laws.
Berkeley and Sean Tan have settled with the executive director,
admitting that they distributed these securities without having filed a
prospectus, contrary to section 61 of the Securities Act (2012 BC
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 January 22, 2013 at 9:00am.
The B.C. Securities Commission is the independent provincial government
agency responsible for regulating trading in securities within the
province. You may view the notice of hearing on our website www.bcsc.bc.ca by typing Robert Waters, Berkeley Coffee and Tea Inc. or 2012 BCSECCOM
466 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).
Learn how to protect yourself and become a more informed investor at www.investright.org
SOURCE: British Columbia Securities Commission
For further information:
For media inquiries, please contact Richard Gilhooley, media relations, 604-899-6713.For public inquiries, please call 604 899 6854 or 1 800 373 6393 (toll free).