ASC orders millions in penalties against Dennis Morice, Milowe Brost, IFFL, Merendon Mining and Gary Sorenson in the Arbour Energy case

CALGARY, Sept. 28, 2012 /CNW/ - The Alberta Securities Commission (ASC) has imposed sanctions totalling nearly $54 million against Dennis Morice, Milowe Brost, The Institute For Financial Learning, Group of Companies Inc. (IFFL), Merendon Mining Corporation Ltd. and Gary Sorenson for, among other things, perpetrating a fraud on Alberta investors in the Arbour Energy case.  All parties also received significant non-monetary sanctions.

In its sanction decision, the ASC panel ordered that:

• Merendon Mining disgorge $38.6 million to the ASC and pay $70,000 in costs, and is permanently banned from trading in or purchasing securities and using exemptions under Alberta securities laws;
• IFFL disgorge $10 million to the ASC and pay $85,000 in costs, and is permanently banned from trading in or purchasing securities, using exemptions under Alberta securities laws and advising in securities;
• Brost pay an administrative penalty of $3 million and $85,000 in costs;
• Brost is permanently banned from trading in or purchasing securities, using exemptions under Alberta securities laws, advising in securities and acting as a director or officer of any issuer;
• Sorenson pay an administrative penalty of $2 million and $70,000 in costs;
• Sorenson is permanently banned from trading in or purchasing securities, using exemptions under Alberta securities laws, and acting as a director or officer of any issuer;
• Morice pay an administrative penalty of $150,000 and $50,000 in costs;
• Morice is permanently banned from acting as a director or officer of any issuer, and is banned from trading in or purchasing securities and using exemptions under Alberta securities laws, for 15 years; and
• Arbour Energy is banned from trading in or purchasing securities and using exemptions under Alberta securities laws, and all trading in or purchasing Arbour Energy securities will cease, until the ASC Executive Director issues a final receipt for a prospectus filed by Arbour Energy.

In handing down its ruling, the ASC panel noted:  "All of the Respondents were involved in perpetrating a systemic massive fraud on Alberta and other investors, involving a complicated web of domestic and offshore corporate and other entities, bank accounts and offerings. Investment fraud is reprehensible and completely unacceptable capital-market misconduct; instances of fraud in the capital market severely threaten the public's confidence and sense of fairness in the whole of our capital market. "

A copy of the sanction decision has been posted to the ASC website at www.albertasecurities.com

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

SOURCE: Alberta Securities Commission

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