The Alberta Securities Commission (ASC) has found that Dedric Robinson, LibertyGate Investment Corp., D. Robinson & Associates Inc. and Allan Holomey breached Alberta securities laws and acted contrary to the public interest through their conduct relating to sales of LibertyGate Investment and D. Robinson & Associates securities.
An ASC panel ruled that the named parties engaged in illegal trades and distributions of these securities in Alberta by selling them without registration, a prospectus or a valid exemption.
The ASC panel also ruled that LibertyGate Investment and D. Robinson & Associates failed to file reports with the ASC of exempt distributions to investors and that Robinson bears responsibility for those breaches.
The ASC panel noted that investors signed agreements to buy securities when they did not meet the exemption criteria.
The ASC panel found that the “seller of securities ultimately bears the burden of ensuring compliance with Alberta securities laws — including the applicability of exemptions. However, we think it appropriate to emphasize that investors, before signing any document, bear a responsibility to read and understand that document to ensure that all statements in that document are true.”
The decision noted that between July 2007 and July 2008, LibertyGate Investment and D. Robinson & Associates raised approximately $4.8 million through 96 investments, at least 86 of which were made by Alberta residents.
The ASC panel has set dates in June and July for submissions on what orders for sanctions and costs the panel ought to make.