The Alberta Securities Commission has imposed sanctions against Simon Wilby and Michael Sirman, former officers and directors of Calgary-based The Hear Now Incorporated, for taking part in an illegal distribution of The Hear Now securities.
An ASC panel found that between 2006 and 2008, Wilby and Sirman actively promoted THN to Alberta investors as a manufacturer and distributor of specialty pet products, and raised over $7 million worth of The Hear Now securities through an illegal distribution to the public using a network of investment clubs.
Neither Wilby nor Sirman were registered in any capacity under Alberta securities laws.
The Hear Now has never been a reporting issuer, has never been listed on any public stock exchange, and never filed with and received a receipt for a preliminary and final prospectus from the commission.
The ASC panel also found that Sirman breached Alberta securities laws by making misrepresentations to investors.
“The misconduct in this case was serious,” the panel said. “(The Hear Now) securities were distributed in an illegal manner that deprived investors of fundamental protections mandated by Alberta securities laws.”
The panel said the denial of these protections exposed the investors to unforeseen risks and financial losses.
Under the commission’s decision, Wilby is banned from trading in or purchasing securities, prohibited from acting as a director or officer of any issuer and denied the use of Alberta securities laws exemptions until March 1, 2012. He must also pay an administrative penalty of $15,000 and costs of $5,000.
Sirman is banned from trading in or purchasing securities, prohibited from acting as a director or officer of any issuer and denied the use of Alberta securities laws exemptions until June 16, 2020. He must pay an administrative penalty of $25,000 and costs of $6,500.
IE