The British Columbia Securities Commission permanently banned a veteran investment advisor from the securities market after he admitted to misleading investors, selling unsuitable investments, failing to disclose conflicts of interest, and making unauthorized discretionary trades.

George Grafton is permanently barred from buying or selling securities, acting as a director or officer or of any issuer, and engaging in investor relations activities except in limited circumstances.

Grafton was the principal operator of Grafton Global Management Ltd. (formerly Grafton Asset Management Group Ltd.). Until 1997, he had been registered in B.C. for over 15 years.

In 1996 and 1997, clients of Grafton and Grafton Global invested over $5 million into Valley Mortgage and Investment Co. Ltd., money that was lent to Kelowna, B.C. area property developers.

In the settlement, Grafton admitted that in some cases he falsely told investors that the Valley investments were a lower risk investment than stock exchange-listed securities. In selling the Valley investments, he also failed to disclose a conflict of interest by not telling investors that he was behind the Valley investments. Grafton sold the illiquid and speculative Valley investments to investors when the investments were unsuitable for many of the clients. He also admitted that he bought Valley investments for some clients without informing them of the purchases until after the trades had been executed. He was not registered to make the discretionary trades.

The BCSC has permanently cease-traded the securities of Grafton Global and Valley.