CALGARY, Oct. 8, 2013 /CNW/ - The Alberta Securities Commission (ASC) has sanctioned Raymond Harvey Johnston and Sherwood Financial Services Ltd. (SFSL) for illegally trading in and distributing SFSL securities to investors in Alberta, making material misleading or untrue statements to investors, and acting contrary to the public interest.
An ASC panel ordered that:
- Johnston is banned, for 15 years, from trading in or purchasing securities and using Alberta securities laws exemptions (with limited exceptions); acting as a director or officer of any issuer, registrant or investment fund manager; acting in a management or consultative capacity in connection with securities market activities; and that he pay an administrative penalty of $100,000 and costs of $50,000; and
- SFSL is permanently banned from trading in or purchasing securities and using Alberta securities laws exemptions; acting as a registrant, investment fund manager or promoter; acting in a management or consultative capacity in connection with securities market activities; and that all trading in or purchasing of SFSL securities must permanently cease.
In making these orders, the ASC panel found that "Johnston simply does not accept the gravity of his and SFSL's misconduct and his responsibility for the harm that ensued", and that the "serious risk of a recurrence of harm from the Respondents to investors and the capital market generally" demanded "strong measures of specific deterrence to ensure no dangerous and premature re-entry into the capital market."
The ASC panel also found that the circumstances demanded "strong measures of general deterrence", based on the "serious risk of future harm from others who, observing the relative ease with which the Respondents improperly raised money, might be tempted to do the same."
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.
SOURCE: Alberta Securities Commission
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