Two securities companies were ordered in September by a New Brunswick Securities Commission (NBSC) panel to cease trading in all securities after a New Brunswick resident filed a complaint against Global Energy Group Ltd. and New Gold Ltd. Partnerships.

The panel issued its reasons for decision on Oct. 20 October, following a similar order issued by the Ontario Securities Commission (OSC).

The NBSC investigation began after the N.B. resident had been solicited by telephone to purchase securities promoted by Global. The complainant attended an information session for the business community, given by NBSC Executive Director Rick Hancox, in Carleton County. Given what he learned during the presentation, he informed the NBSC that he felt he was being solicited by a suspicious company.

“Reporting suspicious behaviour is so important because it enables us to take action,” Hancox says. “This gentleman filed a complaint and may have saved himself and others from losing hard-earned money.”

The NBSC contacted the OSC, which is involved in an ongoing investigation of Global and New Gold. The OSC alleged that Global and New Gold solicited individuals by telephone to invest in Kentucky oil-well-drilling partnerships. It appeared that sales calls were being made from boiler-room operations in Ontario. The OSC further alleged that Global and New Gold distributed securities without complying with securities regulations, and may have provided investors with false or misleading information. Filed affidavits claim that the majority of investor funds have been used for purposes other than as described in investment literature provided to investors.

The OSC issued a temporary cease trade order, which the NBSC reciprocated. The NBSC order states that Global and New Gold shall cease trading in all securities, and that they may not use any exemption under New Brunswick securities law. The NBSC order remains in effect for as long as the OSC order is in effect.

In two unrelated matters, reciprocal cease trade orders were also issued by the NBSC against: Malsbury Investment Corp. and Shayne Lorne Malsbury, based on a decision by the Alberta Securities Commission; and against Global Petroleum Strategies, LLC; Petroleum Unlimited, LLC; Aurora Escrow Services, LLC; and Roger A. Kimmel Jr., following orders by the ASC and the Saskatchewan Financial Services Commission.