The Alberta Securities Commission (ASC) has ordered $1.7 million in disgorgement, $450,000 in penalties, and permanent trading bans in an illegal distribution case.
An ASC hearing panel sanctioned the principals in Calgary-based Blue Sky Resorts Inc., related entities Mandyland Inc. and Blue Sky Lease Inc. (Dennis Uhersky, Margaret Uhersky and Jeremy Davis) for their capital market misconduct.
Back in 2012, the panel found that they illegally traded and distributed securities of the three companies, committed fraud, and made misrepresentations to investors.
The panel ordered that they disgorge $1.7 million; that each pay an administrative penalty of $150,000; and that they be permanently banned from trading, acting as a director or officer of any issuer, and acting in a management or consultative capacity in connection with activities in the securities market. It also ordered that the companies cease trading, using any exemptions, and that trading in their securities cease until they file a prospectus. The panel also ordered $160,000 in costs.
According to the penalty decision, the respondents sought 10-year market bans, a $100,000 penalty and $50,000 in costs.
The panel said that the violations were “very serious” and “caused substantial financial harm” to investors as well as harm to the capital markets generally. And, it notes that respondents personally benefited from the contraventions.