BCSC settles with two B.C. men for misrepresentations and breach of a cease trade order
VANCOUVER, July 26, 2018 /CNW/ - In settlement agreements with the British Columbia Securities Commission (BCSC), Darren Scott Davidson and Paul Webster have admitted that they are liable for misrepresentations to investors and breaches of a cease trade order.
Prospective investors were given a business plan that failed to disclose that Titan-West had a 2012 operating loss of $566,050 on gold revenue of $41,307. Instead, the business plan disclosed an outdated 2012 "pro forma" financial statement with gross revenue of $12 million and net operating income of $6,959,418, which Davidson and Webster ought to have known would be relied on by investors. Four prospective investors who received the business plan invested $172,000.
On February 13, 2014, the Executive Director of the BCSC issued a cease trade order for Titan-West securities. After the order was issued, Titan-West representatives solicited investments in Titan-West and Titan-West issued two promissory notes for $27,000 to two previous investors. This amount is included in the $172,000 invested by investors who received the business plan.
Between July 2011 and August 2014, Davidson and Webster were directors and officers or de facto directors and officers of Titan-West. As such, Davidson and Webster are liable for Titan-West's misrepresentations to investors and breaches of the cease trade order.
Webster and Davidson will each disgorge $48,000 to the Commission as part of the settlement. Both men have been ordered to resign any positions they hold as directors or officers of an issuer or registrant.
Webster and Davidson are also banned from trading in or purchasing any securities or exchange contracts (with limited exceptions); relying on any of the exemptions set out in the Securities Act, the regulations or a decision; becoming or acting as a director or officer of any issuer or registrant (with limited exceptions); becoming or acting as a registrant or promoter; acting in a management or consultative capacity in connection with activities in the securities market; and engaging in investor relations activity. Webster's and Davidson's bans are to remain in effect for at least 12 years.
You may view the settlement agreements on our website, www.bcsc.bc.ca, by typing Darren Scott Davidson, Paul Webster, 2018 BCSECCOM 169 or 2018 BCSECCOM 171 in the search box. Information about disciplinary proceedings can be found in the Enforcement section of the BCSC website.
Please visit the Canadian Securities Administrators' (CSA) Disciplined List for information relating to persons and companies disciplined by provincial securities regulators, the Investment Industry Regulatory Organization of Canada (IIROC) and the Mutual Fund Dealers Association of Canada (MFDA).
About the British Columbia Securities Commission (www.bcsc.bc.ca)
The British Columbia Securities Commission is the independent provincial government agency responsible for regulating capital markets in British Columbia through the administration of the Securities Act. Our mission is to protect and promote the public interest by fostering:
- A securities market that is fair and warrants public confidence
- A dynamic and competitive securities industry that provides investment opportunities and access to capital
Learn how to protect yourself and become a more informed investor at www.investright.org
SOURCE British Columbia Securities Commission
Media Contact: Andrew Poon, 604-899-6880; Public inquiries: 604-899-6854 or 1-800-373-6393 (toll free), [email protected]
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