The Alberta Securities Commission has found that Sea Sun Capital Corp. and Rodney Koch breached provincial securities laws and acted contrary to the public interest by engaging in illegal distributions of Sea Sun securities, the ASC said Monday.

An ASC panel also found that Sea Sun, Koch and Graham Millington made prohibited representations and misrepresentations to investors and that Millington failed to ensure proper oversight of Sea Sun’s capital-raising activities.

The panel found that from 2003 to 2007, Sea Sun raised millions of dollars from investors by selling them investments in a marine tourism operation without registration or a prospectus, or available exemptions. Investors have apparently lost some or all of the money they invested.

In its decision, the ASC panel stated that the illegal distribution of Sea Sun’s securities “…reflected a profound, repeated and prolonged disregard for, or deliberate skirting of…fundamental elements of securities laws.” The panel concluded that “investors were enticed into trades in Sea Sun securities in part by repeated prohibited, or misleading and untrue, statements.”

Written submissions regarding possible sanctions against Sea Sun, Koch and Millington will be submitted to an ASC panel and, if necessary, the hearing will be reconvened.

IE