CALGARY, June 7 /CNW/ - Klytie's Developments Inc. (Klytie's), Hidai
Friedman and Efrat Friedman of Calgary have paid the Alberta Securities
Commission (ASC) $220,000 and accepted a 25-year ban from the market after
admitting they breached Alberta Securities laws.
In a settlement with the ASC, Klytie's and the Friedmans admitted they
made false statements regarding material facts to investors, perpetrated a
fraud on investors, and engaged in an illegal distribution of securities in
the Klytie's Global Real Estate Fund during 2005 and 2006. Through the
promotion and sale of the securities, they raised $7.6 million in the United
States, Israel and Canada.
Under terms of the ASC settlement, Klytie's and the Friedmans will also
refrain for a period of 25 years from trading in or purchasing securities
(with limited exceptions) and using any exemptions under Alberta securities
laws. Furthermore, the Friedmans will refrain from acting as a director or
officer of any issuer for 25 years.
Some of the breaches of Alberta's securities laws include: claims of
ownership in properties that did not exist or belonged to other companies;
false statements about past performance and reserve funds; and, the use of
investor funds for personal expenses or the purchase of personal goods and
A copy of the Settlement Agreement and Undertaking is posted 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 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