Calgary businessman given two years in federal penitentiary for misleading
investors

CALGARY, Oct. 19 /CNW/ - A Provincial Court of Alberta judge has sentenced Calgary businessman Robert John Sellars to two years in a federal penitentiary after finding him guilty on seven counts, including making misleading or untrue statements to investors and breaching a 2006 Alberta Securities Commission (ASC) order by trading in securities without being registered and without a prospectus. The Provincial Court also permanently banned Sellars from trading in securities, from acting as an officer or director of any issuer and from using Alberta securities laws exemptions.  The Provincial Court also granted restitution orders, requiring Sellars to pay almost $2 million to four Alberta investors.

"It is significant that the Court sentenced a 73-year old man to two years in a federal penitentiary," said the ASC Director of Enforcement Brett Code.  "At this level of misconduct, bans or administrative penalties are simply not viewed by the ASC as a sufficient deterrent to other like-minded individuals.  Where warranted, the ASC will be seeking incarceration for individuals that have no regard for securities laws in this province." 

The Provincial Court sentenced Sellars to consecutive six-month sentences for each of four separate counts related to illegal trading with four individuals and ordered that each of those individuals be paid, by way of restitution, $1,105,000, $120,000, $550,000, and $200,000, respectively.  A concurrent two-year sentence was handed out for the count related to misleading and untrue statements made to investors.

On November 28, 2006, an ASC panel banned Sellars from trading securities or using Alberta securities laws exemptions for two years after it found that he had engaged in an illegal distribution of securities and made a prohibited representation to an investor.  An ASC investigation later revealed that during those two years, Sellars had ignored the ASC order and continued to the sell securities to Alberta investors. 

Sellars' company, Sellars Financial Inc., is currently under an ASC Interim Cease Trade Order that prohibits it from trading any securities or relying on any Alberta securities laws exemptions.

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
	403.297.4481
For Investor Inquiries:	ASC Public Inquiries
	Toll Free 1.877.355.4488