VANCOUVER, May 10, 2013 /CNW/ - The executive director of the British
Columbia Securities Commission has issued a notice of hearing alleging
that an Israeli citizen currently residing in Vancouver breached
securities laws by illegally distributing securities on a website, and
by making false statements while promoting a purported investment on
The notice alleges that Daveed Zarr (a.k.a. Asi Lalky) created a website
for Zarr Energy Corporation that offered to sell shares in the company,
despite the fact that Zarr is not registered to trade securities and
Zarr Energy has never filed a prospectus in B.C.
The notice states that in September 2010, Zarr created a website for
Zarr Energy. The website offered 20 million shares in the company at
$1.00 per share.
In December 2011, Zarr posted an online classified advertisement
promoting the investment in the Financial Services section of
Vancouver's Craigslist website. Zarr stated that investors would earn a
50% annual return if they agreed to open a foreign exchange trading
account containing $250,000 and give Zarr trading authority over the
account. Zarr failed to mention that there would be risk associated
with such a high rate of return.
In response to an email inquiry from a commission investigator posing as
an investor, Zarr represented that he was a "professional currency
trader" and reiterated that investors would earn a 50% annual return.
Both of these statements were false or misleading.
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 Tuesday, May 28, 2013, at 9:00 a.m.
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 Daveed Zarr, Zarr Energy Corporation or 2013 BCSECCOM 35 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, contact Richard Gilhooley, media relations, 604-899-6713.
For public inquiries, call 604-899-6854 or 1-800-373-6393 (toll free).