A British Columbia man who was handed a 20-year trading ban last year was arrested Wednesday and charged with violating that ban, among other things.
The B.C. Securities Commission reports that its criminal investigations team and Abbotsford, B.C. police arrested Gregory Carrington in Abbotsford. Carrington is charged with 10 counts of securities law violations, including breaching an existing trading ban, selling securities without registration or a prospectus, and making misrepresentations. None of the allegations have been proven.
Back in February 2011, Carrington agreed to a 20-year trading ban (and 20-year bans from serving as a director or officer of an issuer, acting as a manager or consultant in the securities market, and from engaging in investor relations) after he admitted being responsible for four related companies that made illegal distributions to investors in Canada and the United States.
In that settlement agreement, Carrington admitted that he allowed the four companies to contravene B.C. securities laws when they distributed securities under offering memoranda that contained numerous deficiencies, and were misleading. Under those deficient documents, the issuers raised about $8.7 million from 916 investors in various provinces and the U.S. A $100,000 penalty that the agreement said “would otherwise be appropriate” was not imposed as he was said to have “no reasonable prospect” of being able to pay.