(February 23) — M. Dianne Stuart “orchestrated a crude, but deliberate scheme to circumvent Alberta law,” a panel of the Alberta Securities Commission has found.

The comment is part of the panel’s decision with respect to W.H. Stuart Mutuals Ltd. (WHSM), M. Dianne Stuart, W. Howard Stuart and Ben Poirier.

The scheme was accomplished by disguising sales of securities that occurred in Alberta to Alberta residents as sales to B.C. residents. If the sales had occurred in B.C., they would have qualified for an exemption in that province. In Alberta, the filing of a prospectus and registration is required for these sales.

Mr. Stuart knew that securities were being distributed by WHSM in Alberta, but there was no evidence showing involvement by him in the plan to circumvent Alberta securities law. Mr. Stuart’s responsibility for the violations stems from his position as president and CEO of WHSM.

Mr. Poirier, an employee of WHSM, played a minor role in the events and none of the allegations against him was sustained.

The panel will reconvene on April 28 in Calgary to determine appropriate sanctions for WHSM, Ms. Stuart and Mr. Stuart.
-IE Staff