News Release
BCSC EXECUTIVE DIRECTOR’S BULLETIN: Securities regulator gives notice of a hearing into alleged fraud
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Date:
2006-09-21 -
Number:
2006/37
Vancouver - The Executive Director of the British Columbia Securities Commission has issued a notice of hearing alleging that Albert Stephen Budai committed fraud and illegally raised money from investors.
The notice of hearing alleges that, from January 2001 to December 2004, Budai perpetrated a fraud through a practice known as “scalping” in which he bought and then sold shares in companies that he profiled in subscription-based publications he controlled and in his personal appearances on a Vancouver radio show. The notice says Budai did not tell his readers or radio show listeners that he was going to sell, or had sold, his shares after profiling the companies.
The notice also alleges that Budai advised some individual investors to buy shares in companies he profiled in his publications without being properly registered to do so.
The notice alleges Budai contravened securities laws when he raised more than $1.4-million by issuing shares in a company he controlled to 49 investors - 25 in B.C. - without meeting proper registration or prospectus requirements.
The notice also alleges Budai committed fraud in connection with internet domain names he acquired and his failure to disclose the use of investor monies for his own benefit.
These allegations have not been proven. Counsel for the Executive Director will apply to set dates for a hearing into the allegations before a panel of commissioners.
The B.C. Securities Commission is the independent provincial government agency responsible for regulating trading in securities within the province. You may view notices of hearings on our website www.bcsc.bc.ca. If you have questions, contact Andrew Poon, Media Relations, 604-899-6880.