ASC Settles Allegations Against Hallett Financial Services Ltd. and Phillip
Ross Hallett

CALGARY, May 21 /CNW/ - The Alberta Securities Commission (ASC) has concluded a settlement with Edmonton-based Hallett Financial Services Ltd. and its director Phillip Ross Hallett in connection with allegations that the named parties took part in an illegal distribution of Hallett Financial Services securities and that Hallett made prohibited representations to Alberta investors.

In the settlement agreement, Hallett Financial Services and Hallett admitted to raising $1.3 million between 2006 and 2008 from the illegal distribution of "Fixed Rate Term Notes" to Alberta investors without complying with the registration and prospectus requirements imposed by Alberta securities laws. Hallett also admitted to making prohibited representations to investors as to the safety of the investment being offered.

Under the settlement agreement:

    
    -   Hallett Financial Services agreed to permanently refrain from
        purchasing or trading in securities or exchange contracts and refrain
        from using Alberta securities laws exemptions.
    -   Hallett agreed to pay the ASC $40,000 to settle the allegations and
        $2,000 towards costs. Hallett also undertook to cease acting as an
        officer or director of any reporting issuer or an issuer that
        distributes securities to the public, or to benefit from securities
        laws exemption for a period of five years.
    

A copy of the settlement agreement can be found 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 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

For further information: For Media Inquiries: Mark Dickey, Senior Communications Advisor, [phone]; For Investor Inquiries: ASC Public Inquiries, Toll Free 1-877-355-4488