Securities regulator alleges fraud, illegal distributions and making false statements
VANCOUVER, May 3, 2013 /CNW/ - The executive director of the British Columbia Securities Commission has issued a notice of hearing alleging that a B.C. man committed fraud, illegally distributed securities and made false statements to commission investigators.
The notice alleges that Lance McManne illegally sold securities in Orbuttron Ltd. and Orbuttron Sound Waves II Ltd. to two individuals, and then committed fraud by lying to the investors and using their funds for personal purposes. McManne, who is not registered to sell securities in B.C., is the sole director and officer of Orbuttron and Orbuttron II. Neither company has ever filed a prospectus in B.C.
The notice states that in September 2007, McManne approached an individual who lived in the same apartment building as him about making an investment in Orbuttron Ltd, a non-reporting Nevada company. The investor gave McManne a cheque for $7,500 to purchase 30,000 shares of Orbuttron. McManne provided the investor with a receipt for an investment in Orbuttron II, a non-reporting B.C. company.
In August 2009, McManne provided a receipt for $5,000 for 20,000 shares of Orbuttron to another B.C. resident whom he met in a pub.
Neither investor was a close personal friend of McManne. McManne told each investor that they had purchased shares in Orbuttron, and that it would be shortly listed on the "NASDAQ junior board". Neither company was ever listed on the "NASDAQ junior board". McManne deposited the investors' funds into his personal bank account and used them for personal purposes. Both investors asked McManne for their money back but he has not returned it to them.
In response to BCSC staff inquiries, McManne advised that he is the sole shareholder of both companies, and that the companies never distributed any securities, nor did they collect money for that purpose. These statements were untrue.
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 May 28, 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 Lance McManne, Orbuttron Ltd, Orbuttron Sound Waves II Ltd. or 2013 BCSECCOM 104 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).
Learn how to protect yourself and become a more informed investor at www.investright.org
SOURCE British Columbia Securities Commission