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
Stormy Daniels describes meeting Trump during occasionally graphic testimony in hush money trial
Stormy Daniels took the witness stand Tuesday at Donald Trump's hush money trial, describing for jurors a sexual encounter the porn actor says she had with him in 2006 that resulted in her being paid off to keep silent during the presidential race 10 years later.
Former homicide detective explains how police will investigate shooting outside Drake's Bridle Path mansion
Footage from dozens of security cameras in the area of Drake’s Bridle Path mansion could be the key to identifying the suspect responsible for shooting and seriously injuring a security guard outside the rapper’s sprawling home early Tuesday morning, a former Toronto homicide detective says.
Jeremy Skibicki has 'uphill battle' to prove he's not criminally responsible in Winnipeg killings: legal analysts
Accused killer Jeremy Skibicki could have a challenging time convincing a judge that he is not criminally responsible for the deaths of four Indigenous women, a legal analyst says.
Indian envoy warns of 'big red line,' days after charges laid in Nijjar case
India's envoy to Canada insists relations between the two countries are positive overall, despite what he describes as 'a lot of noise.'
Alcohol believed to be a factor in boating incident after 2 men die: N.S. RCMP
Two Nova Scotia men are dead after a boat they were travelling in sank in the Annapolis River in Granville Centre, N.S., on Monday.
Bye-bye bag fee: Calgary repeals single-use bylaw
A Calgary bylaw requiring businesses to charge a minimum bag fee and only provide single-use items when requested has officially been tossed.
Susan Buckner, who played spirited cheerleader Patty Simcox in 'Grease,' dead at 72
Susan Buckner, best known for playing peppy Rydell High School cheerleader Patty Simcox in the 1978 classic movie musical 'Grease,' has died. She was 72.
CFL suspends Argos QB Chad Kelly at least nine games following investigation
The CFL suspended Toronto Argonauts quarterback Chad Kelly for at least nine regular-season games Tuesday following its investigation into a lawsuit filed by a former strength-and-conditioning coach against both the player and club.
Air France flight from Paris to Seattle lands in Iqaluit after heat smell in cabin
A plane travelling from Paris to Seattle was forced to make an emergency landing in Iqaluit after there was a heat smell in the cabin during the flight.