Bedford Biofuels CEO fined for breaching Alberta securities laws
Aug. 29, 2017 - The Alberta Securities Commission (ASC) has concluded a settlement agreement with Edmonton resident David Gregor McClure, who admitted to multiple breaches of Alberta securities laws.
August 29, 2017 By Alberta Securities Commission
McClure was the directing mind of Bedford Biofuels Inc., Bedford Biofuels Tana Delta Phase 1 Investment Corporation and Art Without Borders Inc. (AWB), and a major shareholder of Bella Bay Investments Inc.
McClure admitted to distributing shares of Bedford, Bedford Tana Delta, AWB, and Bella Bay without being registered to do so and without filing a preliminary prospectus or prospectus with the Executive Director of the ASC as required by Alberta securities laws. He also admitted that he traded in the securities of AWB and Bella Bay without being registered to do so and without any exemptions from the registration requirement.
McClure raised the following amounts by selling shares to investors who did not qualify for any exemptions under Alberta securities laws:
- $975,000 for Bedford;
- $72,000 for Bedford Tana Delta;
- $125,000 for AWB;
- $200,000 for Bella Bay.
In addition, McClure admitted to making misleading or untrue statements to three investors concerning the imminent sale of Bedford to Asian buyers. At the time of the statements, no actual buyers existed; $450,000 was obtained from the investors as a result of these statements.
McClure will also pay the ASC $80,000 as part of the Settlement Agreement and will resign all positions held by him as a director or officer of any issuer that relies on exemptions under Alberta securities laws or that distributes securities to the public. He also agreed that, for a period of three years, to refrain from:
- becoming or acting as a director or officer of any issuer that relies on exemptions under Alberta securities laws or that distributes securities to the public;
- trading in or purchasing any securities or derivatives (with limited exceptions);
- relying on any exemptions contained in Alberta securities laws;
- engaging in any investor relations activities;
- advising in securities or derivatives; and
- acting in a management or consultative capacity in connection with activities in the securities market.
A copy of the Settlement Agreement can be found on the ASC website at www.albertasecurities.com.
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.
Print this page