The Alberta Securities Commission (ASC) issued a decision on Friday ordering that brothers Ronald William Cadman and Travis Alfred Cadman be sanctioned for failing to comply with the terms of a settlement agreement they entered with the ASC in 2008 in connection with providing unregistered advice.
Under the 2008 deal, the Cadman brothers were to refrain from acting as directors or officers of any issuer for two years. However, they admitted to breaching that undertaking by acting as directors and officers of several companies in that period.
According to the decision the ASC handed down on Friday, “Travis testified that (in essence) the replacement directors or officers proved inadequate: ‘They needed our guidance and, you know, we ended up creeping back into the damn chairs we left, honestly’.”
As a result, the ASC ordered that each Cadman must pay a $110,000 administrative penalty; they were also banned from advising in securities or derivatives for five years and from registration and serving as directors or officers for 10 years. They must also pay $12,500 in costs.
The ASC hearing panel noted that the brothers’ breach of the settlement undermined the regulator’s efficacy and it concluded that, “the Cadmans would pose a real and significant danger to investors and the Alberta capital market were their admitted misconduct to go unsanctioned.”