ASC alleges Calgary-based Wealthstreet, Rachael Poffenroth and David Jones
breached Alberta securities laws

CALGARY, Oct. 15 /CNW/ - The Alberta Securities Commission (ASC) has issued a Notice of Hearing alleging that Wealthstreet Inc., its president Rachael Poffenroth and its chief executive officer David Jones breached Alberta securities laws by illegally trading securities to Alberta investors without filing a prospectus, being registered as salespersons or use of any applicable exemption.   

In the Notice of Hearing, ASC staff also allege that Jones:

• acted as an advisor without being registered to do so;
• made misleading or untrue statements to investors about the return on their investment in Wealthstreet; and
• engaged in unfair practices by putting unreasonable pressure on investors to purchase securities from Wealthstreet, including pressuring investors to borrow money against their home equity.

ASC staff allege that Wealthstreet, Poffenroth and Jones raised approximately $3.3 million from at least 94 Alberta investors.

An appearance to set a date for a hearing will be held on December 8, 2010 at 2:30 p.m. in the ASC Hearing Room on the 6th Floor, 300 - 5th Avenue S.W., Calgary, Alberta. 

A copy of the Notice of Hearing is available on the ASC website at www.albertasecurities.com.

The ASC is the regulatory agency responsible for administering the province's securities laws. It is entrusted with fostering a fair and efficient capital market in Alberta and with protecting investors.  As a member of the Canadian Securities Administrators, the ASC works to improve, coordinate and harmonize the regulation of Canada's capital markets.

For further information:

For Media Inquiries:	Mark Dickey Senior Communications Advisor 403.297.4481
For Investor Inquiries:	ASC Public Inquiries Toll Free 1.877.355.4488