The Alberta Securities Commission (ASC) has banned British Columbia residents Kevin Steele, Wallace Fulkco and David Fulkco from trading securities, acting as a director or officer of any issuer and using any Alberta securities laws exemptions.

The ASC order permanently bans Steele, bans Wallace Fulkco until March 31, 2018 and bans David Fulkco until March 31, 2023.

The ASC order reciprocates bans issued by the British Columbia Securities Commission on March 31, 2008.

The three individuals admitted to violating various securities laws, according to the BCSC. Between October 2002 and May 2005, they solicited investors to participate in a scheme involving commodity futures contract trading that resulted in investor losses of approximately US$7 million.

Steele misrepresented to investors and to the Fulkcos that he was a successful commodity futures contract trader who would use their money for trading, the BCSC said. He created fictitious account statements that showed false trading profits for commodity futures contracts.

In total, 226 investors paid money to Steele, on the promise of returns of 8% per month. The Fulkcos, who relied on the false information provided by Steele, solicited 214 investors.

In November 2005, a U.S. court found that Steele created false statements and defrauded investors. The court ordered Steele to pay investors approximately US$7.4 million in restitution and ordered a civil monetary penalty of US$6.2 million against him.

In May 2006, Steele pleaded guilty in B.C. provincial court to one count of fraud over $5,000. The court sentenced him to six years in prison.

The new order in Alberta was issued by an ASC panel, which noted that “the Respondents have conducted themselves in ways that could expose Alberta investors and the Alberta capital market to harm.”