ASC Finds Maitland Capital Ltd. and Grossman Engaged in Illegal Distributions

    CALGARY, June 12 /CNW/ - The Alberta Securities Commission (ASC) has
determined that Maitland Capital Ltd., its president Al Grossman (also known
as Abraham Herbert Grossman and Allen Grossman), and salespersons William
Rouse, Ron Gardner (also known as Ron Garner), Dianna Cassidy and Robert
Geller engaged in illegal trades and distributions in contravention of the
Alberta Securities Act.
    Between September 2004 and January 2006, Grossman and the salespersons
listed above cold called investors in several Canadian provinces, including
Alberta, encouraging them to purchase of Maitland Capital common shares, even
though Grossman and the salespersons were not registered under the Act to do
    In addition, the ASC panel determined that Grossman made
misrepresentations to Maitland Capital investors, made false statements to a
Commission investigator, and permitted or encouraged a Maitland Capital
salesperson to engage in an unfair practice. It also found that Gardner made
prohibited representations and a statement to an investor he knew or ought to
have known was misleading or untrue. The panel determined that Maitland
Capital and Grossman failed to file reports of exempt distributions as
    In total, 517 Albertans invested approximately $2.7 million in Maitland
    The panel will review submissions from the parties before it makes its
decision on sanctions.
    A copy of the decision in its entirety is available on the ASC website at

    The ASC is the regulatory agency responsible for administering the
province's securities laws. It is entrusted to foster a fair and efficient
capital market in Alberta and to protect investors. As a member of the
Canadian Securities Administrators, the ASC works to improve, coordinate and
harmonize the regulation of Canada's capital markets.

For further information:

For further information: For Media Inquiries: Tamera Van Brunt,
Director, Communications and Investor Education, (403) 297-2664; For Investor
Inquiries: ASC Public Inquiries, (403) 297-4296, Toll Free 1-877-355-4488

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