News Release

Vancouver – In a settlement agreement with the British Columbia Securities Commission, League Investment Services Inc. (LISI), a B.C. corporation registered in all provinces as an exempt market dealer, admitted that while promoting the sale of IGW Real Estate Investment Trust (IGW REIT) securities it did not disclose its relationship or connection to IGW REIT.

The agreement states that between September 2010 and June 2012, LISI promoted the sale of IGW REIT securities through its website, brochures, and its Blue Book of Real Estate Syndication. Adam Gant and Emanuel Arruda, both of whom are B.C. residents, own 100% of LISI through their family trusts. They are also its officers and sole directors – Gant is LISI’s Ultimate Designated Person, and Arruda is in charge of LISI’s investor relations activities.

IGW REIT is a real estate investment trust that owns commercial properties in Ontario, Manitoba, Saskatchewan and British Columbia.  IGW REIT has approximately 2,200 investors, who as of June 19, 2013 had invested approximately $290 million. Gant and Arruda are trustees of IGW REIT, and Gant is the President of IGW REIT.

IGW REIT is managed by League Assets Corporation (LAC), which earns management fees based on the sale of IGW REIT securities by LISI. In 2010, IGW REIT paid management fees of $7.8 million to LAC. Gant and Arruda, through their family trusts, also own 100% of LAC and are its officers and sole directors – Gant is CEO, and Arruda is President and Co-Chairman.

In the settlement agreement, Gant and Arruda acknowledged that LISI, by recommending an investment in IGW REIT securities without disclosing its relationship or connection to IGW REIT and LAC in the same medium of communication, contravened securities laws that prohibit a registered firm from recommending a security of a related or connected issuer.

For this misconduct, Gant and Arruda have agreed to pay to the commission $150,000 and $100,000, respectively. They have also agreed to pass a securities course for exempt market dealer representatives, acceptable to the Executive Director, within six months from the date of the settlement agreement. Additionally, LISI must disclose its relationship with IGW REIT in its marketing materials, to the satisfaction of the Executive Director.

The B.C. Securities Commission is the independent provincial government agency responsible for regulating trading in securities within the province. You may view the settlement agreement on our website www.bcsc.bc.ca by typing Adam Gant, Emanuel Arruda, League Investment Services Inc., or 2013 BCSECCOM 411 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).

For media inquiries, contact Richard Gilhooley, media relations, 604-899-6713. For public inquiries, call 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 

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