Vancouver man agrees to sanctions for illegal trading and unregistered advising
Vancouver – In a settlement agreement with the British Columbia Securities Commission (BCSC), Patrick Aaron Dunn has admitted that he sold securities in breach of securities laws.
The agreement states that Dunn, a resident of Vancouver, B.C., was registered as a dealing representative with two exempt market dealers from June 22, 2011 until October 11, 2013 and from November 8, 2013 until March 18, 2015.
In early 2013, Dunn offered to help raise money for Havenplex Holdings Ltd., a B.C. company seeking financing to build a seniors housing complex in Creston, B.C. While still employed at the first exempt market dealer, Dunn signed an agreement stating that he would be solely in charge of raising line of credit and equity investment monies for Havenplex, and that he would see to it that Havenplex’s affairs were compliant with B.C. securities law.
In October of 2013, Dunn raised $5,000 for Havenplex by selling a promissory note to an investor. After the first exempt market dealer terminated him, and before he was registered with the second exempt market dealer, Dunn sold a Havenplex promissory note to a new investor for $50,000.
Havenplex relied on the private issuer prospectus exemption, and Dunn asked both investors to sign documents attesting to the fact that they were accredited without conducting the proper review. In fact, neither investor qualified for the private issuer exemption.
Dunn acknowledges that his conduct breached securities laws regarding prospectus and registration requirements. He has paid $11,000 to the BCSC, and is prohibited from trading in securities (with limited exceptions), becoming or acting as a director or officer of any issuer or registrant (with limited exceptions), and from becoming or acting as a promoter or registrant (with limited exceptions) for a period of two years. Dunn is also banned, for the same period, from acting in a management or consultative capacity in connection with the securities market, and from engaging in investor relations activities.
The agreement notes that Dunn has no regulatory history with the BCSC, and did not profit from his misconduct.
You may view the settlement agreement on our website www.bcsc.bc.ca by typing Patrick Aaron Dunn or 2016 BCSECCOM 62 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 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
- 30 -
Richard Gilhooley, Media Relations
604-899-6854 or 1-800-373-6393 (toll free)
Learn how to protect yourself and become a more informed investor at www.investright.org