BCSC alleges that B.C. man concealed his connection to an offshore trading account and lied to staff
VANCOUVER, Aug. 12, 2013 /CNW/ - The Executive Director of the British Columbia Securities Commission has issued a notice of hearing alleging that a B.C. man breached securities laws when he lied to BCSC staff about his connection to a corporation that purchased and sold securities of a company for which he was a director.
The notice alleges that Rudolph Walter Brenner attempted to conceal his relationship to a securities trading account held by Muscatine Financial Corp., a company controlled by the Brenner Family Trust (Brenner is a beneficiary of the Brenner Family Trust). BCSC staff maintains that Brenner used Muscatine's trading account at an Austrian bank to sell shares of Hellix Ventures Inc. in September 2011. Brenner was a director of Hellix, a reporting issuer in B.C. and Alberta, between January 2000 and April 2012.
The notice states that on March 21, 2012, BCSC staff sent an Order for Production to Brenner, requiring him to identify securities trading accounts, both domestic and foreign, over which he had direction, control, or a beneficial interest, and to produce documents for all such accounts. On March 27, Brenner provided documents relating to Canadian accounts, failing to provide or mention documents relating to the Muscatine brokerage account.
After being asked several times by BCSC staff to confirm whether his response was complete and being asked specifically about his connection to Muscatine and its brokerage account, Brenner replied that he did not have control of the brokerage account, and did not have access to the records referred to in the Order for Production.
In April 2012, Brenner's counsel admitted to BCSC staff that Brenner was aware that Hellix private placement shares had been delivered to the Muscatine brokerage account, and that he had recommended that the Brenner Family Trust participate in several private placements, as in the case of Hellix.
In May 2012, Brenner explained that he did not recommend that the Brenner Family Trust, through the Muscatine brokerage account, sell Hellix shares in September 2011, and that he did not know the Hellix shares were sold until April 2012.
BCSC staff contends that this is false, and that Brenner had directed the manager of the Muscatine brokerage account on September 7, 2011 as to the number of Hellix shares to be sold, the price to sell the shares for both the US and Canadian markets, and the date to sell the shares.
The notice also alleges that Brenner did not file insider reports regarding the September 2011 sale of Hellix shares in the Muscatine brokerage account within the prescribed five days of those sales, thereby breaching securities laws.
These allegations have not been proven. Counsel for the executive director will apply to set dates for a hearing into the allegations before a panel of commissioners on September 3, 2013 at 9:00am.
The B.C. Securities Commission is the independent provincial government agency responsible for regulating trading in securities within the province. You may view the notice of hearing on our website www.bcsc.bc.ca by typing Rudolph Walter Brenner or 2013 BCSECCOM 94 in the search box. Information regarding disciplinary proceedings can be found in the Enforcement section of the BCSC website. Please visit the Canadian Securities Administrators' Disciplined Persons List for information relating to persons disciplined by provincial securities regulators, the Investment Industry Regulatory Organization of Canada (IIROC) and the Mutual Fund Dealers Association (MFDA). For media inquiries, please contact Richard Gilhooley, media relations, 604-899-6713. For public inquiries, please call 604 899 6854 or 1 800 373 6393 (toll free). Learn how to protect yourself and become a more informed investor at www.investright.org
SOURCE British Columbia Securities Commission