ASC Settles with Strategic Equity Corp. and David D. Bulloch

CALGARY, June 11 /CNW/ - The Alberta Securities Commission (ASC) has concluded a settlement with Calgary-based Strategic Equity Corp. and its former Director of Business Development, David D. Bulloch, in connection with allegations that Strategic Equity and Bulloch engaged in illegal insider trading and manipulated the market involving shares of Shift Networks Inc.

In the settlement agreement, Bulloch and Strategic Equity admitted that in the first three months of 2007 they had knowledge of undisclosed material information regarding Shift Networks' distressed finances. Bulloch also admitted that during this time, he sold approximately two million Shift Networks shares owned by Strategic Equity. Strategic Equity and Bulloch further admitted that the selling of Shift Networks shares allowed Strategic Equity to avoid a loss of approximately $133,000. Bulloch and Strategic Equity also admitted that they knew or ought to have known that numerous buy orders placed by Bulloch on behalf of Strategic Equity created or contributed to a false or misleading appearance of trading activity in Shift Networks stock.

Under the settlement agreement, Strategic Equity and Bulloch paid the ASC:

    
    -  $200,000 to settle the insider trading allegation;
    -  $30,000 to settle the market manipulation allegation; and
    -  $50,000 for investigation costs.
    

Bulloch further undertook to cease trading in securities for a period of three years. Strategic Equity further agreed to cease trading in securities for a period of two years.

A copy of the settlement agreement is posted on the ASC website: 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: Lorinda Brinton, Senior Advisor, Investor Education, 403.297.2665; For Investor Inquiries: ASC Public Inquiries, Toll Free 1.877.355.4488