News Release

BCSC panel sanctions man for making false statements and trading without registration

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Vancouver – A British Columbia Securities Commission panel has sanctioned Daveed Zarr (a.k.a. Asi Lalky) for making false statements and illegally trading securities.

In August 2014, the panel found that Zarr breached securities laws regarding registration and prospectus requirements when he offered shares in his company, Zarr Energy Corporation, via a website he created, and when he solicited investments in foreign exchange trading through numerous Craigslist and other online postings. Zarr has never been registered in any capacity in B.C., and Zarr Energy has never filed a prospectus. Zarr also made misrepresentations about his experience as a currency trader, and about potential returns to investors.

In its sanctions decision, the panel stated that, in spite of the fact that no one actually invested in Zarr Energy or in Zarr’s advertised foreign exchange trading opportunity,

"Zarr’s wanton disregard for the need for securities regulatory compliance and his efforts to excuse his misconduct together with his unwillingness to take any responsibility for the potential harm to investors who might have been persuaded to invest in either Zarr Energy or in Zarr’s foreign exchange scheme suggest to us that Zarr poses an ongoing threat to investors and to the integrity of our capital markets."

The panel ordered that Zarr pay a fine of $20,000. The panel also ordered that Zarr be prohibited from trading or purchasing securities (with limited exceptions), and from acting as a director or officer of any issuer for a period of four years. He is also prohibited, for the same period, from becoming or acting as a promoter or registrant, from engaging in investor relations activities, and from acting in a management or consultative capacity in connection with the securities market. These prohibitions will remain in place until the later of four years, or such time as the fine is paid.

You may view the sanctions decision on our website www.bcsc.bc.ca by typing Daveed Zarr, Zarr Energy Corporation, or 2014 BCSECCOM 454 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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Media Contact:
Richard Gilhooley, Media Relations

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