The Alberta Securities Commission (ASC) has ordered market bans and administrative penalties against Ontario residents, Carlos Da Silva and David Campbell, for their role in illegally raising $817,000 from the sales of Limelight Entertainment securities to more than 249 Alberta investors.

The ASC panel banned Da Silva and Campbell from trading in the Alberta capital market, using Alberta securities laws exemptions or acting as a director or officer of any issuer for 10 years and eight years respectively.

The panel also ordered Da Silva and Campbell to pay administrative penalties of $100,000 and $75,000 respectively.

The ASC panel found that between January 2004 and January 2006, Da Silva, president and principal guiding mind of Limelight, Campbell, vp and treasurer of Limelight, and Limelight salespersons “deprived Alberta investors of protections key to the securities regulatory regime” in their sales efforts of Limelight securities and that this was “serious misconduct.” As stated by the panel, “it appears that all funds invested in Limelight have been lost and that investors have been left with worthless, illiquid securities.”

The ASC panel found Limelight salesperson Hank Ulfan’s actions of taking an investor’s funds that he had agreed to invest in Limelight and converting them into another investment a “particularly egregious act of illegal trading and distributing of securities.” The panel banned Ulfan from trading, using exemptions or acting as a director or officer of any issuer for seven years, and ordered him to pay an administrative penalty of $50,000.

The ASC panel also ordered Limelight salespersons Jacob Moore, Ove Simonsen and Eric O’Brien to each pay a $10,000 administrative penalty and cease trading or using securities exemptions for five years. Other Limelight salespeople, Tim McCarty and Rick Clynes, were each ordered to pay $5,000 in administrative penalties and cease trading or using exemptions for three years.

The panel also prohibited the trade of Limelight securities until a prospectus is filed with the ASC.

Da Silva, Campbell and the salespeople must also pay a total of $45,000 in costs.

A copy of the first and second part of this decision is posted to the ASC website at www.albertasecurities.com.