BCSC panel sanctions two B.C. residents for illegally distributing securities and breaching a cease trade order
VANCOUVER, Aug. 21, 2014 /CNW/ - A British Columbia Securities Commission panel has sanctioned two B.C. residents and a Nevada corporation whose securities are quoted on the Pink Sheets in the U.S. for illegally distributing securities, breaching a cease trade order (CTO), and making representations to investors.
In March 2014, a commission panel found that Alexander Anderson and Ken Chua distributed shares of Oriens Travel and Hotel Management Corp. to three B.C. residents without filing a prospectus, and for which no prospectus exemptions were available. Oriens raised proceeds of US$58,500.
In its decision, the panel found that, in distributing Oriens shares to investors, Oriens, Anderson and Chua breached the terms of a CTO against the company. Anderson and Chua were found to have made misrepresentations to the investors when they failed to advise them of the CTO.
In its sanctions decision, the panel noted that Chua, "continues to pose a risk to our investors and our markets" and that Anderson, "had a limited role in the misconduct."
The panel ordered that Chua resign any position he holds as an officer of a director of an issuer or registrant. He is banned from trading in securities, purchasing securities or exchange contracts, and from becoming or acting as a director or officer of any issuer or registrant for six years. He is also prohibited, for the same period, from becoming or acting as a registrant or promoter, from engaging in investor relations activities, and from acting in a management or consultative capacity in connection with the securities market.
Chua was also ordered to pay to the commission the US$58,500 obtained as a result of his and Oriens' misconduct. He and Oriens are jointly and severally liable for this amount. Furthermore, Chua was ordered to pay an administrative penalty of $35,000.
The panel ordered that Anderson resign any position he holds as an officer of a director of an issuer or registrant (with limited exceptions). He is banned from trading in securities, purchasing securities or exchange contracts, and from becoming or acting as a director or officer of any issuer or registrant (with limited exceptions) for two years. He is also prohibited, for the same period, from becoming or acting as a registrant or promoter, from engaging in investor relations activities, and from acting in a management or consultative capacity in connection with the securities market.
Anderson was also ordered to pay an administrative penalty of $15,000.
Oriens was permanently cease traded by the panel.
You may view the sanctions decision on our website www.bcsc.bc.ca by typing Oriens Travel and Hotel Management Corp., Alexander Anderson, Ken Chua, or 2014 BCSECCOM 352 in the search box. To view the Executive Director's settlement agreement with Leonard Ralph, please type 2013 BCSECCOM 414 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).
About the British Columbia Securities Commission (www.bcsc.bc.ca)
The British Columbia Securities Commission is the independent provincial government agency responsible for regulating capital markets in British Columbia through the administration of the Securities Act. Our mission is to protect and promote the public interest by fostering:
- A securities market that is fair and warrants public confidence
- A dynamic and competitive securities industry that provides investment opportunities and access to capital
Learn how to protect yourself and become a more informed investor at www.investright.org
SOURCE British Columbia Securities Commission