Vancouver men banned from financial markets over blockchain company misconduct
The former CEO and CFO of a Vancouver-based blockchain company have admitted misconduct to B.C.'s securities regulator.
Robert Earle Dawson and David Malcolm Alexander were officers of BLOK Technologies Inc., a Vancouver company that was listed on the Canadian Securities Exchange. Each man separately reached a settlement with the B.C. Securities Commission last week.
The settlements detail the two men's roles in the misconduct, both of which stemmed from a news release the company issued in June 2018.
The release announced that BLOK had raised more than $5.4 million through a private placement, but failed to disclose that the company owed more than $4.4 million in consulting fees.
The release indicated that the money raised would be used "for advancing the company’s current blockchain investment projects, evaluating new blockchain opportunities and for working capital purposes," according to the settlements.
It did not say that the vast majority of the funds – roughly 82 per cent of the total – would be spent on consulting the consulting fees, rather than for the stated purpose.
Alexander, BLOK's former CFO, admitted in his settlement that he knew the company had "already spent or owed the consulting fees" at the time the release was issued, and that by authorizing, permitting or acquiescing to the issuance of the release, he had violated the provincial Securities Act.
Similarly, Dawson, the former CEO, admitted in his settlement that he "knew or ought to have known" that BLOK had already spent or owed the fees, and thus was responsible for the same misconduct.
Neither man had any prior history of regulatory misconduct in B.C., according to the settlements.
Both men agreed to resign any positions they currently hold as directors or officers of companies subject to the Securities Act. Each also agreed to a ban from participation in the financial markets, though for vastly different lengths of time.
Alexander agreed to be banned from market participation for three years and to pay a $25,000 penalty to the commission.
Dawson agreed to a 14-year ban, but is not required to pay any fees to the commission.
"Dawson is an undischarged bankrupt and lacks the ability to pay a monetary amount that would normally form part of any settlement," his settlement reads.
BLOK Technologies Inc. "is in the process of being dissolved," according to the settlements.
CTVNews.ca Top Stories
NEW Keeping these exotic pets is 'cruel' and 'dangerous,' Canadian animal advocates say
Canadian pet owners are finding companionship beyond dogs and cats. Tigers, alligators, scorpions and tarantulas are among some of the exotic pets they are keeping in private homes, which pose risks to public safety and animal welfare, advocates say.
NEW Life got in the way of one woman's reunion with her father, but a DNA test gained her a family
Anne Marie Cavner was the closest she'd ever been to meeting her biological father, but then life dealt her a blow. From an unexpected loss to a host of new relationships, a DNA test changed her life, and she doesn't regret a thing.
Doctors ask Liberal government to reconsider capital gains tax change
The Canadian Medical Association is asking the federal government to reconsider its proposed changes to capital gains taxation, arguing it will affect doctors' retirement savings.
How quietly promised law changes in the 2024 federal budget could impact your day-to-day life
The 2024 federal budget released last week includes numerous big spending promises that have garnered headlines. But, tucked into the 416-page document are also series of smaller items, such as promising to amend the law regarding infant formula and to force banks to label government rebates, that you may have missed.
Quebec farmers have been protesting since December. Is anyone listening?
Upset about high interest rates, growing paperwork and heavy regulatory burdens, protesting farmers have become a familiar sight across Quebec since December.
'Catch-and-kill' strategy to be a focus as testimony resumes in Trump hush money case
A veteran tabloid publisher was expected to return to the witness stand Tuesday in Donald Trump's historic hush money trial.
Quebec Health Department reports 28 cases of eye damage linked to solar eclipse
Quebec's Health Department says it has received 28 reports of eye damage related to the April 8 total solar eclipse that passed over southern parts of the province.
Psychologist becomes first person in Peru to die by euthanasia after fighting in court for years
A Peruvian psychologist who suffered from an incurable disease that weakened her muscles and had her confined to her bed for several years, died by euthanasia, her lawyer said Monday, becoming the first person in the country to obtain the right to die with medical assistance.
Diver pinned under water by an alligator figured he had choice. Lose his arm or lose his life
An alligator attacked a diver on April 15 as he surfaced from his dive, nearly out of air. His tank emptied with the gator's jaws crushing the arm he put up in defence.