The CEO of a U.S. tech company has settled allegations with the B.C. Securities Commission (BCSC) claiming that the firm violated a cease trade order.
The BCSC announced that it has entered a settlement with Stephen Squires, chief executive of U.S.-based Quantum Materials Corp., concerning allegations that the company distributed securities in breach of a cease trade order (CTO). In settling the case, Squires has agreed to pay $15,000 to the BCSC, and both he and the company are prohibited from trading in securities, or engaging in investor relations activities, for five years.
According to the settlement, the BCSC ordered a cease trade of Quantum’s securities in 2009 for failing to make required filings. However, it notes that despite that order, the company distributed securities to 11 B.C. residents, raising approximately $268,000.
“Quantum and Squires acknowledged that this action constituted a breach of both the CTO and securities laws regarding prospectus and registration requirements,” the commission says, adding that the settlement indicates that Squires and Quantum cooperated with the regulator in reaching the settlement.