The Alberta Securities Commission (ASC) has ordered that First Global Ventures, S.A. and its principal, Allen Grossman, be permanently banned from trading or using any exemptions under Alberta securities laws.

The ASC panel based its decision on similar orders issued against First Global and Grossman by the New Brunswick Securities Commission (NBSC) and the Ontario Securities Commission (OSC).

Panels of the NBSC and the OSC had found that First Global and Grossman were involved in a scheme that involved investors in a company called Maitland Capital Ltd. Under the scheme First Global representatives contacted Maitland investors and offered the opportunity to exchange their shares in Maitland, plus additional cash, for shares in First Global. The scheme breached securities laws since both Maitland and Grossman were subject to cease trade orders in those jurisdictions.

The ASC panel was also informed that a First Global representative had recently contacted an Alberta investor and made the same type of offer without registering with the ASC or filing the proper documents as required under Alberta securities laws. The ASC panel ruled it was in the public interest to reciprocate an order similar to those issued by the OSC and NBSC to extend to Alberta investors and the Alberta capital market “key protections afforded in other jurisdictions.”

A copy of the decision is available on the ASC website at www.albertasecurities.com.