News Release

BCSC alleges that two former registrants and an Alberta company breached cease-trade order and filed misleading disclosure

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Vancouver – The Executive Director of the British Columbia Securities Commission (BCSC) has issued a notice of hearing alleging that two former investment advisors and an Alberta company breached a cease trade order and filed misleading disclosure regarding the corporate role of one of the respondents.

The notice alleges that Stewart Douglas Loughery and Richard Dean Reoji Nawata issued promissory notes of Military International Limited (MIL) to six investors for proceeds of $170,000. MIL is an Alberta company that at one time traded on the TSX Venture Exchange. On December 11, 2002, the Executive Director ordered that all trading in MIL’s securities cease until MIL filed required records. This order remains in force.

Nawata is MIL’s President, Chief Executive Officer, and director of record. Staff alleges that Loughery acted as a de facto director of MIL because he was an undischarged bankrupt since 2003 and was not allowed to be an actual director. Both Loughery and Nawata are B.C. residents, and both were previously registered as investment advisors.

BCSC staff contends that in the fall of 2010, Loughery had no income and needed money to pay legal bills. Despite the MIL cease trade order, Loughery approached potential investors and told them that he was raising funds to reactivate and reorganize MIL, with the aim of re-listing MIL on an exchange. MIL raised $170,000 by issuing promissory notes to six investors.

Staff also alleges that in materials filed with the BCSC, MIL did not disclose that Loughery was a de facto director of MIL. As a result, the filings were misleading and MIL breached securities laws concerning corporate disclosure.

As MIL’s director and officer of record, Nawata authorized, permitted, or acquiesced in MIL’s contraventions. As a de facto director or officer of MIL, Loughery also authorized, permitted, or acquiesced in MIL’s contraventions.

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 on January 26, 2016 at 9:00am.

You may view the notice of hearing on our website,, by typing Stewart Douglas Loughery, Richard Dean Reoji Nawata, Military International Limited, or 2015 BCSECCOM 460 in the search box. You can find information about disciplinary proceedings 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 of Canada (MFDA).

About the British Columbia Securities Commission (

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

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