ASC sanctions Calgary-based Delta 3 Capital Corporation and its directors

CALGARY, Oct 7 /CNW/ - The Alberta Securities Commission (ASC) has sanctioned Calgary-based Delta 3 Capital Corporation Inc. and its directors Darrell W. Dunn, Michael Gottselig and Lucas "Luke" Brzeski for illegal trading and distributions of securities, and for making prohibited representations to Alberta investors.

In its sanction decision, the ASC panel ordered:

• All trading or purchasing of Delta 3 Capital Corporation securities permanently cease and Delta 3 Capital Corporation be permanently denied the use of Alberta securities laws exemptions;
• Dunn be banned from trading or purchasing securities, using Alberta securities laws exemptions and acting as a director or officer of any issuer for 10 years, and pay an administrative penalty of $60,000;
• Gottselig be banned from trading or purchasing securities, using Alberta securities laws exemptions and acting as a director or officer of any issuer for five years, and pay an administrative penalty of $30,000;
• Brzeski be banned from trading or purchasing securities, using Alberta securities laws exemptions and acting as a director or officer of any issuer for three years, and pay an administrative penalty of $15,000; and
• Dunn, Gottselig and Brzeski each pay $7,600 towards the costs incurred by the ASC in the investigation and hearing of this matter. 

Delta 3 Capital Corporation, Dunn, Gottselig and Brzeski raised money through a program that promised fixed returns from trading in United States government treasury bills.  The ASC panel noted: "This case demonstrated the seeming ease with which the Respondents, through an ill-considered, amateurishly-constructed and illegally-operated scheme, were able to raise US$1 million from Alberta investors.  Lest any observer consider emulating that dubious success, we consider it essential that our orders deliver a significant measure of general deterrence."

The ASC panel issued its merits decision in this matter on July 20, 2010. The merits decision and sanction decision are posted 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