BCSC panel finds that B.C. man concealed his connection to an offshore trading account and lied to staff
Vancouver – A British Columbia Securities Commission panel has found that Rudolph Walter Brenner breached securities laws when he lied to BCSC staff about his connection to a corporation that purchased and sold securities of a company for which he was a director.
The panel found that Brenner, a B.C. resident, concealed his relationship to a securities trading account held by Muscatine Financial Corp., a company controlled by the Brenner Family Trust (Brenner is a beneficiary of the Brenner Family Trust). The panel also found that Brenner falsely denied using Muscatine’s trading account at an Austrian bank to sell shares of Hellix Ventures Inc. in September 2011. Brenner was a director of Hellix, a reporting issuer in B.C. and Alberta, between January 2000 and April 2012.
In its decision, the panel stated that Brenner was asked by BCSC staff in March 2012 to identify securities trading accounts, both domestic and foreign, over which he had direction, control, or a beneficial interest, and to produce documents for all such accounts. Brenner provided information about his Canadian accounts, but did not mention the Muscatine trading account or provide any documentation related to it.
Brenner also denied providing the instructions to trade the shares of Hellix. He subsequently admitted his connection to the Muscatine trading account after repeated enquiries by commission staff.
The panel also found that Brenner did provide the instructions to trade the Hellix shares.
The panel also found that Brenner did not file insider reports regarding the September 2011 sale of Hellix shares in the Muscatine brokerage account within the prescribed five days of those sales, thereby breaching securities laws concerning insider reporting.
The panel ordered that Brenner be prohibited from trading in securities, purchasing securities or exchange contracts, and from becoming or acting as a director or officer of any issuer or registrant for a period of two years. He is also banned, for the same period, from becoming or acting as a registrant or promoter, from engaging in investor relations activities, and from acting in a management or consultative capacity in connection with the securities market.
You may view the findings decision on our website www.bcsc.bc.ca by typing Rudolph Walter Brenner or 2014 BCSECCOM 292 in the search box. Information regarding disciplinary proceedings can be found in the Enforcement section of the BCSC website.
Please visit the Canadian Securities Administrators’ Disciplined Persons List for information relating to persons disciplined by provincial securities regulators, the Investment Industry Regulatory Organization of Canada (IIROC) and the Mutual Fund Dealers Association (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
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Richard Gilhooley, Media Relations
604-899-6854 or 1-800-373-6393 (toll free)
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