May 21, 2009
SAINT JOHN (CNB) - Barry Adams, an insurance salesperson and former mutual fund salesperson in Saint John, has been banned from selling securities for 10 years and ordered to pay $20,000 in penalties for failing to comply with New Brunswick securities regulations.
On April 20, a panel of the New Brunswick Securities Commission (NBSC) approved the settlement agreement reached between Adams and staff of the NBSC. The panel issued an order outlining these sanctions.
Adams was retained by Estate Financial Inc., a New Brunswick company, to sell securities offered through Walton International Group Inc. to accredited investors under an exemption in New Brunswick securities law.
Eight of the 11 investors who purchased Walton securities after being referred by Adams were not accredited investors, a fact that Adams knew or ought to have known at the time. Adams also made misrepresentations to NBSC staff during the investigation.
"We recognize that the registration and prospectus requirement, which serve to protect the investing public, are not always necessary," said Rick Hancox, NBSC executive director. "As the provincial regulator, we ensure that the rules, as well as the exceptions to the rules, are followed. Those dealing, advising or selling securities need to ensure that their clients meet all the criteria of the exemptions they wish to use."
Accredited investors include individuals who have sufficient financial means or assumed knowledge and, therefore, require a lesser degree of protection from the regulatory system. For more information about accredited investors and exemptions, and other information on investing, visit 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 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 or 1-866-933-2222, e-mail, Michelle.Robichaud@nbsc-cvmnb.ca.