April 23, 2009
SAINT JOHN (CNB) - Two Fredericton-based stock promoters have been ordered to pay a total of $150,000 in penalties by a panel of the New Brunswick Securities Commission (NBSC).
Michael Cody and Donald Nason were the last remaining New Brunswick respondents in the matter involving Locate Technologies Inc. and Tubtron Controls Corp. et al.
Cody and Nason were involved in soliciting and selling shares in Locate Technologies Inc. and Tubtron Controls Corp. to New Brunswick investors. Cody and Nason admitted to making prohibited representations to investors and acting in violation of the Securities Act when promoting and selling these securities. In addition, Cody and Nason admitted to misleading investigators during the NBSC staff investigation.
As a result of these violations to New Brunswick securities law, the panel ordered that Cody and Nason both be permanently barred from trading in securities on behalf of the public; the panel also ordered Cody and Nason be banned from becoming an officer or director of any issuer. Cody has been ordered to pay a penalty of $50,000 and Nason, a penalty of $100,000. They must also jointly pay $2,000 in costs for the hearing.
"Our mandate is to ensure honest and responsible conduct by those selling securities," said Rick Hancox, executive director of the NBSC. "Rules are in place to protect investors and to ensure the integrity of New Brunswick's capital markets."
Locate Technologies Inc. and Tubtron Controls Corp., both from Alberta, have a long history of circumventing securities regulations in the province to sell their securities; they have been banned from the capital markets in New Brunswick and subsequently in Alberta. More than $1 million worth of Locate Technologies Inc. and Tubtron Controls Corp. shares were sold to New Brunswick residents between 2004 and 2006.
Previous news releases and orders pertaining to this matter may be found on the NBSC website.
The NBSC 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 to foster fair and efficient capital markets as well as confidence in those markets.
MEDIA CONTACT: Michelle Robichaud, communications, New Brunswick Securities Commission, 506-643-7045.