The British Columbia Securities Commission has settled with the former CEO and president of a Richmond-based medical device company who admitted to illegally distributing securities to investors.

In the settlement agreement, James Richard Elliot, the former CEO and president of MDMI Technologies Inc. (MDMI), admitted to holding presentations and investor meetings, marketing the shares of MDMI, and raising approximately $2.3 million from 262 B.C. investors.

Approximately 259 of the investors did not qualify for the “friends and family” exemption from B.C. securities laws that Elliot relied upon to sell the securities. Elliot violated securities laws when he sold investors the securities without being registered or filing a prospectus.

As part of his settlement agreement, Elliot is prohibited, for five years, from trading or purchasing securities, except in limited circumstances. He also cannot become or act as a director or officer, act as a manager or consultant in matters related to securities markets, or engage in investor relations for five years. Elliot must also complete a course concerning the duties and responsibilities of directors and officers.

The executive director issued a notice of hearing in August 2007 that set out allegations against MDMI and Elliot, with respect to the distribution of its securities.

The executive director cease-traded the securities of MDMI in June 2005 for failing to file distribution reports. The BCSC settled with MDMI in May 2008 and lifted the cease trade order on the company’s securities.

Elliot has no prospect of paying the $70,000 fine the executive director would have assessed in the public interest.