VANCOUVER, Sept. 27, 2013 /CNW/ - A British Columbia Securities Commission panel has ordered a Nevada company to pay $800,000 for illegally trading and distributing securities in B.C.
The panel found that Armadillo Energy Inc., a Nevada corporation that claims to be a privately owned energy corporation that owns an oil lease in Oklahoma, illegally raised $868,769 from 26 British Columbians. The company has never filed a prospectus in B.C.
For its misconduct, the panel ordered that Armadillo be permanently banned from trading or purchasing securities in B.C. The panel also permanently cease-traded the company.
The panel also ordered Armadillo to pay an administrative penalty of $800,000.
In its decision, the panel stated that, "Armadillo ignored the Act and distributed securities illegally in British Columbia. Its activities show that its continued participation in our capital markets represents a risk to investors and those markets."
The allegations stem from a notice of hearing issued by the executive director on August 28, 2012. All of the respondents except Armadillo entered into settlement agreements with the executive director prior to the hearing.
The B.C. Securities Commission is the independent provincial government agency responsible for regulating trading in securities within the province. You may view the decision on our website, www.bcsc.bc.ca, by typing Armadillo Energy Inc. or 2013 BCSECCOM 409 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, contact Richard Gilhooley, media relations, 604-899-6713. For public inquiries, call 604 899 6854 or 1 800 373 6393 (toll free).
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SOURCE British Columbia Securities Commission