The president of a TSX Venture Exchange company will pay a fine and have his ability to participate in securities markets limited after admitting that he traded securities through a private offshore account without reporting the transactions.

In a settlement with the Executive Director, Michael Derek Townsend, a 39-year-old Vancouver resident, agreed to pay the B.C. Securities Commission $41,250 for failing to file insider reports pertaining to securities transactions he made in two B.C. companies — Lateegra Gold Corp. and West Hawk Development Corp.

Between January 2005 and August 2006, Townsend used his offshore brokerage account to buy and sell shares in the two companies.

Townsend filed insider reports for his transactions on Aug. 30, 2006 after BCSC staff brought his failure to file to his attention through information it received from the RCMP’s Integrated Market Enforcement Team.

Townsend has been the president and a director of Lateegra since Oct. 23, 2002. He also held senior management positions with Lateegra and West Hawk during the period in which he failed to file.

Under the settlement, Townsend cannot trade in securities except in limited circumstances. With the exception of his positions with Lateegra, Townsend will resign any position he holds as a director or officer of any issuer. He is also prohibited from engaging in investor relations or acting as a director or officer of any other issuer for one year.