ASC reaches settlement agreement with Patrick Lough, Lynda Davidson, Wayne Barnes and Mountain Shores Land Ventures Ltd.

CALGARY, Feb. 4, 2014 /CNW/ - The Alberta Securities Commission (ASC) has concluded a settlement agreement with Patrick Lough, Lynda Davidson, Wayne Barnes, and Mountain Shore Land Ventures Ltd. related to breaches of Alberta securities laws.

In the settlement agreement, Mountain Shores and Barnes admitted to distributing securities without filing a prospectus and without an applicable prospectus exemption, and Lough and Davidson admitted to permitting those illegal distributions. All respondents admitted to making materially misleading or untrue statements to investors.  Between February and September 2011, the Respondents raised roughly $2.9 million from 23 investors, including 18 from Alberta, for a proposed project near Pigeon Lake, Alberta.

Under the settlement agreement:

• Lough paid the ASC $40,000 and $5,000 in costs, and (with limited exceptions) agrees to: cease trading in or purchasing securities or exchange contracts; refrain from using any prospectus or registration exemptions contained in Alberta securities laws; and refrain from acting as an director of any issuer, registrant or investment fund manager for four years.
• Davidson paid the ASC $30,000 and $5,000 in costs, and (with limited exceptions) agrees to: cease trading in or purchasing securities or exchange contracts; refrain from using any prospectus or registration exemptions contained in Alberta securities laws; and refrain from acting as an director of any issuer, registrant or investment fund manager for three years.
• Barnes paid the ASC $30,000 and $5,000 in costs, and (with limited exceptions) agrees to: cease trading in or purchasing securities or exchange contracts; refrain from using any prospectus or registration exemptions contained in Alberta securities laws; and refrain from acting as an director of any issuer, registrant or investment fund manager for four years.
• Mountain Shores undertook to correct misinformation previously provided to investors and to offer investors an optional refund of their investment.

A copy of the Settlement Agreement can be found on the ASC website at www.albertasecurities.com.

The ASC is the regulatory agency responsible for administering the province's securities laws. It is entrusted to foster a fair and efficient capital market in Alberta and to protect investors.  As a member of the Canadian Securities Administrators, the ASC works to improve, coordinate and harmonize the regulation of Canada's capital markets.

SOURCE: Alberta Securities Commission