Barry Adams, an insurance salesperson and former mutual fund salesperson in Saint John, has been banned from selling securities for 10 years and ordered to pay $20,000 in penalties, the New Brunswick Securities Commission said Thursday.

On April 20, a panel of the NBSC approved the settlement agreement reached between Adams and staff of the NBSC. The panel issued an order outlining these sanctions.

Adams was retained by Estate Financial Inc., a New Brunswick company, to sell securities offered through Walton International Group Inc. to accredited investors under an exemption in New Brunswick securities law.

Eight of the 11 investors who purchased Walton securities after being referred by Adams were not accredited investors, a fact that Adams knew or ought to have known at the time. Adams also made misrepresentations to NBSC staff during the investigation.

Accredited investors include individuals who have sufficient financial means or assumed knowledge and, therefore, require a lesser degree of protection from the regulatory system.

“We recognize that the registration and prospectus requirement, which serve to protect the investing public, are not always necessary,” says Rick Hancox, NBSC executive director. “As the provincial regulator, we ensure that the rules, as well as the exceptions to the rules, are followed. Those dealing, advising or selling securities need to ensure that their clients meet all the criteria of the exemptions they wish to use.”

IE