ASC finds that Bert Lavallee breached Alberta securities laws; dismisses allegations against Brian Gibbs, David Alexander and North America Frac Sand, Inc.
An ASC panel determined that Lavallee sold over 4.5 million common shares of NAFS through an account in the Bahamas while knowing that the CTO was in effect.
CALGARY, AB, Aug. 23, 2022 /CNW/ - The Alberta Securities Commission (ASC) has found that Lambert (Bert) Joseph Lavallee breached the Securities Act (Alberta) by trading in common shares of North America Frac Sand, Inc. (NAFS) while a cease trade order (CTO) was in effect and by withholding information reasonably required during an ASC investigation.
An ASC panel determined that Lavallee sold over 4.5 million common shares of NAFS through an account in the Bahamas while knowing that the CTO was in effect. As that misconduct "involved real and substantial connections to Alberta," the ASC had jurisdiction over Lavallee's actions. The panel also noted that those being interviewed during an ASC investigation are to answer questions reasonably required for the investigation and "do not get to decide what they consider is important or relevant to an investigation."
The ASC panel dismissed other allegations against Lavallee and dismissed all allegations against Brian Maurice Gibbs, David Malcolm Alexander and NAFS that: Lavallee and Gibbs were acting as officers of NAFS and actions relating to that role; NAFS, Lavallee, Gibbs and Alexander were responsible for allegedly misleading statements or omissions in certain documents filed by NAFS with the ASC; and Alexander executed false certificates for certain documents filed by NAFS with the ASC.
The proceeding will now move into a second phase to determine what, if any, orders for sanction or cost-recovery ought to be made against Lavallee. The timing of the next steps will be set after hearing from the parties.
A copy of the decision is available on the ASC website at asc.ca.
The ASC is the regulatory agency responsible for administering the province's securities laws. It is entrusted with fostering a fair and efficient capital market in Alberta and with protecting investors. As a member of the Canadian Securities Administrators, the ASC works to improve, coordinate and harmonize the regulation of Canada's capital markets.
SOURCE Alberta Securities Commission
