A panel of the Ontario Securities Commission has approved a settlement agreement reached between OSC staff and Larry Weltman, in which Weltman is permanently prohibited from trading in securities, and from acting as an officer or director of any issuer.

Weltman was a director, executive vice president and chief financial officer of Laser Friendly Inc. (“the Company”), subsequently known as Gaming Lottery Corporation, GLC Limited and GalaxiWorld.com Limited.

Weltman was also reprimanded by the panel, chaired by OSC vice chair Howard Wetston, and ordered to pay $30,000 towards the costs of the investigation.

According to the agreed statement of facts, Weltman knowingly permitted share certificates of the company to be delivered in circumstances where he knew or ought to have known that the certificates could be used to deceive third parties.

He knew that the share certificates purported to represent fully paid shares, when the company did not receive payment for the shares. He failed to ensure that sufficient controls existed to prevent the share certificates from being used for an improper purpose.

Furthermore, Weltman failed to take immediate steps to cancel and to attempt to retrieve share certificates and agreed to permit such certificates to remain in the possession of others, even after he had received notice that one or more of the share certificates may have been used for an improper purpose.

Copies of the Notice of Hearing and Statement of Allegations in this matter, as well as the Settlement Agreement and Order approving the settlement are available on the Commission’s website at www.osc.gov.on.ca.