B.C. resident agrees to pay $10,000 for breaching a cease trade order
Vancouver - In a settlement agreement with the British Columbia Securities Commission (BCSC), Harold Schneider has admitted to breaching a cease trade order (CTO).
The agreement states that on August 6, 2013, the Executive Director of the BCSC cease-traded the securities of Western Standard Energy Corp. for failure to make required filings under the Securities Act. The Executive Director revoked the CTO on January 19, 2016. Schneider acted as the corporate secretary and regulatory contact for Western Standard Energy (now operating as Dominovas Energy Corp.), a Nevada corporation with shares quoted on the OTC markets in the United States.
While the CTO was in effect, Schneider took steps in furtherance of Western Standard Energy's distribution of shares to:
(a) Two private companies for the acquisition of shares in those companies, including the acquisition of its current business;
(b) Four insiders and consultants for the conversion of debt, and payment for services, valued at $72,500; and
(c) 29 investors for proceeds of approximately $43,000.
Schneider arranged for the distribution of shares to the 29 investors as compensation for their previous investment in a failed venture. The investors did not pay for their shares. Schneider and another related party paid for the shares on behalf of the investors. Schneider acknowledges that by taking steps in furtherance of Western Standard Energy's distribution, he breached the CTO and acted contrary to the public interest.
For his misconduct, Schneider has agreed to pay $10,000 to the BCSC, and he is prohibited from becoming or acting as a director or officer of any reporting issuer for a period of three years. He has also agreed to successfully complete a course on the duties and responsibilities of corporate officers and directors that is acceptable to the Executive Director.
The agreement notes that Schneider has a regulatory history, having entered into a settlement agreement with the Alberta Securities Commission in relation to his failure, as the officer and director of a reporting issuer, to make proper disclosure in the issuer's prospectus.
You may view the settlement agreement on our website www.bcsc.bc.ca by typing Harold Schneider or 2016 BCSECCOM 116 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
Alison Walker, Media Relations
604-899-6854 or 1-800-373-6393 (toll free)
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