Feb. 18, 2009
SAINT JOHN (CNB) - A settlement agreement with Berrie White Capital Corp., an Ontario limited market dealer, and Matthew White, a principal of the company, was accepted by a New Brunswick Securities Commission (NBSC) hearing panel on Jan. 12. White has paid an $8,000 penalty and $1,000 in costs associated with the investigation.
The order also provides that the company and White cannot benefit from any exemptions under the Securities Act for two years and four years, respectively, and that White is prohibited from becoming or acting as a director or officer of any issuer, registrant or mutual fund company for four years.
In August 2008, White, an officer, shareholder and chief compliance officer of Berrie White Capital Corp., wrote to two New Brunswick registered mutual fund dealers. He proposed an arrangement to have someone, who is not registered to trade in securities in New Brunswick, sell exempt securities, and to pay illegal commissions to that individual.
In the settlement, White acknowledged that he initially failed to produce relevant documents to an NBSC investigator. After learning of the investigation, White wrote to the New Brunswick mutual fund dealers to revoke his earlier proposal. White eventually furnished all relevant documents to the investigator.
Exemptions exist under New Brunswick securities law to provide greater access to the capital markets in New Brunswick. However, requirements must be met in order to qualify to use these exemptions.
"New Brunswick securities regulation is in place to protect investors and to ensure the integrity of capital markets," said Rick Hancox, NBSC executive director. "We were able to act quickly in this situation and prevent any harm to investors. In this case, the respondents co-operated fully in the resolution of the enforcement action, and are remorseful of their error in judgement."
The New Brunswick Securities Commission is the Crown corporation that regulates the securities industry in New Brunswick. It is funded indirectly by investors through industry. Its mandate is to protect investors from unfair, improper or fraudulent practices, and foster fair and efficient capital markets, as well as confidence in those markets.
MEDIA CONTACT: Michelle Robichaud, communications officer, New Brunswick Securities Commission, 506-643-7045 or 1-866-933-2222, e-mail: Michelle.Robichaud@nbsc-cvmnb.ca.