BCSC panel orders B.C. company to pay disgorgement
Vancouver - A British Columbia Securities Commission (BCSC) panel has found that Havenplex Holdings Ltd. engaged in an illegal distribution and has ordered Havenplex to pay a disgorgement.
The panel found that in the fall of 2013, Havenplex received $55,000 from the sale of its promissory notes to two investors. In February 2014, one of the investors invested a further $50,000 in Havenplex through the company's president. Havenplex is a B.C. company that has never filed a prospectus under the Act.
The panel found that Havenplex relied on the private issuer exemption to distribute its securities. However, the two investors were not accredited and did not otherwise qualify for the purported exemption. During the hearing, Havenplex admitted liability.
In its decision, the panel stated "There is no dispute that the two investors have been harmed and have lost their subscription proceeds."
For its misconduct, Havenplex has been ordered to pay a disgorgement of $105,000 to the Commission.
You may view the decision on our website www.bcsc.bc.ca by typing Havenplex Holdings Ltd. or 2017 BCSECCOM 21 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 and companies 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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