The Alberta Court of Appeal has upheld an Alberta Securities Commission (ASC) decision against Edmonton businessman Lambert “Bert” Lavallee relating to illegal trades and illegal distributions of KCP Innovative Services Inc. securities to Alberta investors.

In dismissing the appeal, the Alberta Court of Appeal concluded that the ASC decision “was based upon the aggregate of the evidence and was supported by the evidence as a whole. It is entitled to appellate deference.”

The Alberta Court of Appeal ruling upholds a February 2008 ASC order that imposed a five-year cease trade, denial of exemptions and director or officer ban against Lavallee. The ASC also ordered Lavallee to pay a $20,000 administrative penalty and $10,000 in costs.

In October 2007, an ASC panel found that Lavallee, a founder and significant shareholder of KCP Innovative Services, was an active participant in the illegal distribution of KCP Innovative Services shares that raised roughly $1.5 million from over 100 Alberta residents between January and September of 2004. The ASC panel determined that Lavallee “abused the accredited investor exemption and, in so doing, participated actively in illegal distributions.” The ASC panel noted that Lavallee “capitalized on the willingness of investors to be a party to that abuse and to hand over their money without benefit of the protections they should have been afforded under Alberta securities laws.”

IE