Decisions

Alan Braun, Jerry Braun, Steven Maxwell (aka Steven Fassman), Braun Developments (B.C.) Ltd., 8022275 Canada Inc. and 0985812 B.C. Ltd. (dba TerraCorp Investment Ltd.) [Findings]

BCSECCOM #: 2018 BCSECCOM 332	Document Type: Findings
Published Date: 2018-10-24	Effective Date: 2018-10-24
Details:

2018 BCSECCOM 332

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Citation:    Re Braun, 2018 BCSECCOM 332                                         Date: 20181024

 

Alan Braun, Jerry Braun, Steven Maxwell (aka Steven Fassman),

Braun Developments (B.C.) Ltd., 8022275 Canada Inc. and

0985812 B.C. Ltd. (dba TerraCorp Investment Ltd.)

 

Panel	Nigel P. Cave	Vice Chair
	Audrey T. Ho	Commissioner
	Don Rowlatt	Commissioner
Hearing Dates	May 4 and 7, 2018
Submissions Completed	August 9, 2018
Date of Findings	October 24, 2018
Appearing
James Torrance	For the Executive Director
Patrick J. Sullivan	For Alan Braun
Owais Ahmed	For Jerry Braun
Steven Maxwell	For himself

                       

Findings

 

I.          Introduction

• This is the liability portion of a hearing under sections 161(1) and 162 of the Securities Act, RSBC 1996, c. 418.
• On May 10, 2017, the executive director issued a notice of hearing against the respondents (2017 BCSECCOM 114) alleging that:
  1. the respondents committed fraud contrary to section 57(b) of the Act when they:

 

• took $450,000 from investors, that they said they would use to purchase properties to generate returns; and

 

• did not purchase the properties but instead spent investors' money on other things;

 

• Alan Braun and Jerry Braun, as directors of Braun Developments (B.C.) Ltd., authorized, permitted or acquiesced in contraventions of section 57(b) of the Act by Braun Developments and that by operation of section 168.2 of the Act, Alan and Jerry also contravened section 57(b) of the Act;

 

• Steven Maxwell, as a de facto director of 8022275 Canada Inc. (275 Inc.), authorized, permitted or acquiesced in contraventions of section 57(b) of the Act by 275 Inc. and that by operation of section 168.2 of the Act, Maxwell also contravened section 57(b) of the Act; and

 

• Alan and Jerry, as directors of 0985812 B.C. Ltd. (dba TerraCorp Investment Ltd.) (TerraCorp), authorized, permitted or acquiesced in contraventions of section 57(b) of the Act by TerraCorp and that by operation of section 168.2 of the Act, Alan and Jerry also contravened section 57(b) of the Act.

 

• During the hearing, we asked the executive director to clarify the number of allegations of contraventions of section 57(b) that he was making against each of the respondents.  The executive director clarified that he alleged three contraventions of section 57(b) against each of the respondents other than TerraCorp, against which he alleged only two contraventions.
• During the hearing, the executive director called three witnesses, a Commission investigator and two investors (Investor L and Investor ML), tendered documentary evidence and made written and oral submissions. Alan and Jerry were represented by counsel at the hearing, tendered documentary evidence and made written and oral submissions.  Maxwell attended the hearing in person and tendered documentary evidence, but did not make written or oral submissions, nor did he attend the hearing of the oral submissions.  None of Braun Developments, 275 Inc. or TerraCorp were represented at the hearing, tendered any evidence or provided any written or oral submissions.
• These are our findings with respect to the liability of the respondents relating to the allegations in the notice of hearing.