News Release
Former investment adviser banned from securities market
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Date:
2004-12-06 -
Number:
2004/50
Vancouver – The British Columbia Securities Commission banned a former investment adviser from the securities market after he admitted to illegally selling securities to his clients and breaching his “fair dealing” and “suitability” obligations.
In a settlement with the BCSC, Grant Claude Cramer, a former registered representative and director of IDF Financial Services Incorporated, agreed to pay the BCSC $15,000 and not to apply for registration under the Securities Act until August 2009. He is banned from buying or selling securities (except for in his personal account), acting as an officer or director (except for a company wholly owned by his family) and engaging in investor relations activities until August 2009.
In the summer of 1997, Cramer was an investment adviser employed with IDF, a securities dealer in northern B.C. During the following three years, Cramer breached securities laws when he:
- illegally sold securities to clients,
- failed to advise clients that some securities they purchased were not suitable, based on their general investment needs and objectives, and
- failed to deal with his clients fairly, honestly and in good faith.
From 1997 to 2000, IDF and its investment advisers, including Cramer, raised more than $13-million by selling securities of River Ranch Resort and other issuers, some of which were sold illegally. River Ranch was a cattle ranch resort under development south of Vanderhoof, B.C.
Cramer’s father, Mark, and his brother, Michael, were the principals of IDF and they settled with the BCSC over this matter in June 2003. They were each ordered to pay $37,000 and barred from the securities market for 12 years. Cramer, who was also a part owner of IDF and the chair of the firm’s due diligence committee, stopped working at IDF in February 2001 and surrendered his registration to sell securities.
Seven IDF investment advisers settled with the BCSC in August 2001, made payments to the BCSC and agreed to strict supervision if they seek registration to sell securities in B.C. again. An eighth IDF investment adviser settled with the BCSC in May 2003.
The B.C. Securities Commission is an independent provincial government agency responsible for regulating trading in securities within the province. You may view the settlement on our website www.bcsc.bc.ca or by typing in the search box, Grant Claude Cramer or 2004 BCSECCOM 658. If you have questions, contact Andrew Poon, Media Relations, 604-899-6880.