The Alberta Securities Commission (ASC) has imposed a five-year cease trade, denial of exemptions and director or officer ban against Edmonton area businessman Lambert (Bert) Lavallee.

Lavallee was penalized for his role in the illegal distribution of KCP Innovative Services Inc. securities. He was also ordered to pay an administrative penalty of $20,000 and $10,000 in costs.

In an earlier decision, an ASC panel had found that Lavallee, a founder and significant shareholder of KCP, was an active participant in the illegal distribution of KCP shares that raised roughly $1.5 million from at least 107 Alberta residents between January and September of 2004.

The panel determined that Lavallee “abused the accredited investor exemption and, in so doing, participated actively in illegal distributions.” The 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.”

The ASC panel concluded, “unless sanctioned, Lavallee would pose a continuing risk to Alberta investors and the capital market.”