The Alberta Securities Commission (ASC) has ordered payment of administrative penalties and costs, along with market bans, against Edmonton-area residents Richard George Kearl, Ross Vincent Bayne, and Wyatt Gordon McNabb for their roles in the illegal distributions of shares of Genoray Advanced Technologies Ltd., American Technology Exploration Corporation and Blue Lagoon Ventures, Inc.
A fourth individual, Douglas Andrew Nesbitt, received market bans and a costs order for his role in the illegal activity.
The illegal trades raised almost $4 million from over 200 Alberta investors in 2001 and 2002.
The ASC panel ruled that Kearl cannot trade or purchase securities, rely on Alberta securities laws exemptions or act as a director or officer of any issuer for 15 years (with exceptions).
The panel also ruled that he must pay an administrative penalty of $125,000 and costs of $30,000, stating “we perceive him (Kearl) to be a danger to Alberta investors and a threat to investor confidence in our capital market if we do not intervene with protective orders.”
Among the panel’s other orders:
- Bayne cannot trade or purchase securities or rely on exemptions for three years (with exceptions), and must pay an administrative penalty of $8,000 and costs of $3,000;
- McNabb cannot trade or purchase securities or rely on exemptions for five years (with exceptions for personal trading) and must pay an administrative penalty of $75,000 and costs of $8,000;
- Nesbitt must resign all positions he currently holds as a director or officer of any issuer and cannot act as a director or officer of any issuer for 10 years (with exceptions) and must pay $10,000 in costs; and
- all trading in or purchasing of Genoray securities is banned and Genoray cannot use any exemptions until the company has received a receipt for a filed prospectus.
In its decision, the panel concluded, “those who engage in illegal trades and make misrepresentations in order to effect sales of securities will not be allowed to profit from their illegal activity.”