The B.C. Securities Commission has sanctioned a Pitt Meadows man for breaching a 2002 cease trade order.
A BCSC panel found Stewart Douglas Loughery breached the order issued against an Albertan company named Military International Ltd., which sold mine detection and military equipment. It formerly traded on the TSX Venture Exchange.
The panel said Loughery, acting officer of the company, breached the order between 2010 and 2011 by entering into loan agreements with six investors for total proceeds of $170,000.
None of that money has been repaid, said a press release issued by the BCSC on March 4.
The securities commission panel imposed a $50,000 administrative penalty on Loughery, and he is prohibited for at least six years from acting as a company director or officer, working as a registrant or promoter, serving in a management or consultative capacity in the securities market, or engaging in investor relations activities.
The company was ordered to pay $170,000 – the amount it obtained by breaching the cease trade order, plus an administrative penalty of $20,000.
In April of 2018, the BCSC reported it found Loughery breached the order. Describing his conduct, a panel said “Loughery was responsible for all material aspects of the investment on behalf of Military. It is clear that he was responsible for dealing with the investors and getting them to invest in the company.”
In addition, the 2002 cease trade order will continue for at least another five years, and will not be lifted until the company’s penalties are paid.
In 2002, the executive director of the BCSC issued a cease trade order against the company for failing to file interim financial statements, and that order remains in force.