The Court of Appeal of Alberta has denied a bid for a further appeal of a lower court decision, which ruled that the enforcement provisions of securities laws are constitutional, and don’t fall under federal jurisdiction.
Three men facing charges of fraud and misrepresentation in Provincial Court under the Securities Act — John Kirk, Benjamin Kirk and Dylan Boyle — challenged the constitutionality of those provisions, arguing that they are in fact criminal law powers, which are the exclusive jurisdiction of the federal government.
The appeal court dismissed an application for permission to appeal a decision by the Court of Queen’s Bench, which denied an appeal of a 2013 decision by an Alberta Provincial Court, ruling that certain provisions of securities laws are indeed constitutional.
Those earlier decisions found that provisions in securities laws that allow courts to impose penal sanctions in securities cases are constitutional. (See Alberta fraud provisions constitutional, court rules, investmentexecutive.com, May 15, 2013.)
In dismissing the leave application, Madame Justice P.A. Rowbotham held that this case does not raise an arguable appeal, and referred to several recent decisions of the Court of Appeal that concluded that “the province has the legislative jurisdiction to enact laws which impose penalties which appear to intrude on the criminal law sphere.”
Commenting on the decision, Bill Rice, chairman and CEO of the Alberta Securities Commission (ASC), said, “This decision effectively puts to rest the argument that individuals who perpetrate securities fraud in Alberta should not be subject to significant penalties, including imprisonment, based on the constitutional division of powers.”
“In order to fulfill our mandate of protecting investors, we must maintain rigorous and visible enforcement activities. The ASC will continue to use every means available to us under the Securities Act to remove those in our capital markets who pose a threat to investors,” he added.