BCSC panel sanctions two men for illegally trading and distributing securities
VANCOUVER, May 16, 2012 /CNW/ - A British Columbia Securities Commission panel has sanctioned two men and two companies for illegally raising money from Canadian and U.S. investors.
In December 2011, a commission panel found that Daniel Scammell, Casper de Beer (aka Casha de Beer), Verified Transactions Corp. (VTC) and VerifySmart Corp. (formerly known as Verified Capital Corp.) traded in securities without being registered in B.C., and distributed those securities without filing a prospectus.
From September 2006 to December 2008, Scammell and VTC raised $641,309 from 49 investors in B.C., Alberta and Washington State. The panel found that these securities were distributed illegally, as the exemptions from B.C. securities laws relied upon by Scammell and VTC did not apply to any of the distributions. Additionally, neither Scammell nor VTC were registered to trade securities, and VTC has never filed a prospectus in B.C.
From November 2008 to March 2009, de Beer and VerifySmart distributed shares in that company to 50 investors in British Columbia, Alberta, Saskatchewan, Manitoba and Ontario, raising a total of $575,000. The panel also found these securities to have been distributed illegally, as the exemptions from B.C. securities laws relied upon by de Beer and VerifySmart did not apply to any of the distributions. Additionally, neither de Beer nor VerifySmart were registered to trade securities, and VerifySmart has never filed a prospectus in B.C.
For their misconduct, Scammell and deBeer are both prohibited from trading in securities, purchasing securities or exchange contracts (with limited exceptions), and from becoming or acting as a director or officer of any issuer, registrant, or investment fund manager for five years. They are also prohibited, for the same period, from becoming or acting as a registrant, investment fund manager or promoter, from engaging in investor relations activities, and from acting in a management or consultative capacity in connection with the securities market.
The panel also ordered Scammell and deBeer to pay to the commission the $1.2 million they obtained as a result of their illegal activity, as well as administrative penalties of $50,000. The prohibitions remain in place until the later of May 14, 2017 and the date these amounts have been paid.
In addition to the orders against Scammell and deBeer, Verified Transactions Corp. and VerifySmart Corp. were permanently cease-traded by the panel.
The B.C. Securities Commission is the independent provincial government agency responsible for regulating trading in securities within the province. You may view the decision on our website, www.bcsc.bc.ca, by typing Scammell, deBeer, VerifySmart Corp, Verified Transactions Corp, or 2012 BCSECCOM 176 in the search box. Information regarding disciplinary proceedings can be found in the Enforcement section of the BCSC website.
Please visit the Canadian Securities Administrators' Disciplined Persons List for information relating to persons disciplined by provincial securities regulators, the Investment Industry Regulatory Organization of Canada (IIROC) and the Mutual Fund Dealers Association (MFDA).
If you have questions, contact Richard Gilhooley, media relations, 604-899-6713. For public inquiries, call 604 899 6854 or 1 800 373 6393 (toll free).
Learn how to protect yourself and become a more informed investor at www.investright.org
Richard Gilhooley
604-899-6713 or
(Canada) 1-800-373-6393
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