The Alberta Securities Commission (ASC) is seeking to reciprocate sanctions imposed by the British Columbia Securities Commission (BCSC) against Kerry John O’Neill.

On September 9, 2009, the BCSC ordered O’Neill be permanently banned from trading in securities, acting as a director or officer of any issuer, acting in a management or consultative capacity in connection with activities in the securities market and engaging in investor relations activities.

In a BCSC settlement agreement, O’Neill acknowledged he raised more than $9.6 million while heading an investment scheme called the “Pay it Forward Program”.

O’Neill admitted he committed fraud against investors when he used approximately $6.4 million of the money raised to pay other investors, approximately $1 million towards business purchases, $213,000 for other investment opportunities and $56,000 for his personal expenses.

ASC staff allege that approximately 64 Alberta investors participated in the Pay it Forward investment scheme.

It is anticipated that the ASC panel will consider this application in April 2010.

IE