The Alberta Securities Commission has initiated formal proceeding into allegations of market manipulation and unethical conduct by James Anderson, former vice president of Calgary-based Savoy Capital Management Ltd.

In its notice of hearing, ASC staff allege that between May 1, 2002 and July 31, 2002 Anderson repeatedly caused Savoy to purchase securities of several companies trading on the Toronto Stock Exchange and TSX Venture Exchange, creating upticks (increases over the previous share price) in those securities.

This activity increased the net asset value for an investment fund that Savoy managed and resulted in artificially higher prices when Savoy sold larger volumes of the securities through other investment dealers.

Savoy’s compensation was based on the net asset value of the fund. In addition, Savoy received a performance bonus if the fund’s rate of return exceeded 6%.

Anderson was responsible for all trading performed by Savoy.

An appearance to set a date for a hearing will be held on August 5 in Calgary.

Anderson has not been registered with the ASC since June 2004.

ASC notice
http://www.albertasecurities.com/dms/1404/11952/12847_ANDERSON,_James_Ryan_-_NOH_-_2005-07-08_-__1892468.pdf