By The Book: ASC reaches $250,000 settlement and more regulatory news for Friday

(July 25, 2008)The Alberta Securities Commission (ASC) has agreed to a $250,000 settlement with Keystone Real Estate Investment of Red Deer over the company’s misrepresentations to the public through promotional material and information seminars.

In addition, Ron and Travis Cadman, principals acting as advisors without being registered in accordance with Alberta securities laws. The Cadmans agreed to resign from all positions as directors or officers and to refrain from becoming or acting as directors or officers or both of any issuer for a period of two years.

In the settlement agreement, the Cadmans also admitted that Keystone’s advertising included untrue claims with respect to its history of successful past real estate projects. As well, certain offering memoranda used to solicit investments did not disclose the Cadmans’ past bankruptcies.

MFDA to hold settlement hearing with Sterling Mutuals

(July 25, 2008) The Mutual Fund Dealers Association of Canada (MFDA) has issued a Notice of Settlement Hearing between staff of the MFDA and Sterling Mutuals.

The subject matter of the proposed settlement agreement concerns allegations that between January 2003 and February 2006, Sterling failed to establish, implement and maintain policies and procedures to ensure that the handling of its business was in accordance with MFDA rules.

In particular, the MFDA alleges that between January 2003 and February 2006, Sterling Mutuals failed to establish, implement and maintain a two-tier compliance structure to supervise client account activity. It’s also alleged that it prevented its branch managers from discharging their supervisory responsibilities, by failing to establish, implement and maintain a two-tier compliance structure.

(07/25/08)

Staff

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