New Brunswick regulator issues trading bans

The New Brunswick Securities Commission has banned Al Grossman and First Trading Global Venture from trading securities following allegations that shares in the Panamanian-based firm were being solicited in violation of the province’s securities laws.

As well as the trading ban in New Brunswick, the two parties are prohibited from using any exemptions that would allow them raise to raise money without being registered or issue a prospectus if they meet certain requirements.

The commission has also ordered a trading halt in all First Global Ventures shares by any of its officers, directors, employees and agents.

The commission took the actions at a hearing last month regarding allegations that First Global Ventures shares were solicited without complying with New Brunswick securities law.

“One of the commission’s roles is to protect investors from unfair, improper or fraudulent practices,” said Rick Hancox, the commission’s executive director. “We have allegations of misrepresentations to investors about the sale of First Global Venture shares. To date, we do not know how many investors in New Brunswick have bought shares in First Global Ventures, but we know that New Brunswick investors are being actively solicited.”

Hancox says Grossman and First Global Ventures are not registered with the commission to sell shares or provide advice on selling shares in New Brunswick. In addition, they did not issue an approved prospectus, as required by the province’s Securities Act.

The commission has held three hearings in this case. Grossman and his lawyer did not appear. Grossman is the subject of two other cease trade orders in New Brunswick, involving Maitland Capital and Limelight Entertainment. Securities commissions in Alberta, Saskatchewan and Ontario have taken similar actions, with Ontario this week extending a temporary cease trading order against Grossman and First Global until a hearing on July 13.

Attempts by Advisor.ca to contact Grossman through his lawyer have been unsuccessful.

The NBSC has scheduled another hearing for November 28 to decide whether to impose administrative penalties against the two parties. The investigation continues and the commission says it is working with regulators in the other three provinces.

The principals of Limelight, Carlos da Silva and David Campbell, have also been banned from trading securities in New Brunswick and prohibited from using any exemptions to raise money in the province. To date, about 38 investors in New Brunswick have spent at least $65,000 to buy shares in Limelight Entertainment, the NBSC claims.

Da Silva and Campbell are also not registered in New Brunswick and have not appeared to present their cases. Their hearing is scheduled for October 10.

Investors who bought shares in Limelight Entertainment, Limelight Capital Management, First Global Ventures, Maitland Capital or Maitland Energy are being asked to contact regulators.

(07/06/06)

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.