Irishtown man ordered to return $12,000 to investors29 August 2012
SAINT JOHN (GNB) – Andrew J. Trites of Irishtown has paid $24,000 as part of a settlement agreement approved by a panel of the New Brunswick Securities Commission on July 17.
The order was issued following the conclusion of an investigation by commission staff with the cooperation of Trites. The investigation revealed that he was paid sales commissions for his role in securing $1.8 million in loans from four New Brunswick individuals. Trites has never been registered with the commission to trade in securities.
The loans were secured with promissory notes issued by James A. MacCallum of Jamestown, NY (formerly of the Moncton area) and Andrew Mitchell Holdings, LLC., a company controlled by MacCallum.
“New Brunswickers should know that individuals who are soliciting their money and using that money for investment purposes, must comply with New Brunswick securities laws,” said Rick Hancox, executive director with the New Brunswick Securities Commission.
“If you have been asked to loan money to someone who has promised you a return because they are investing that money, it is a securities transaction,” said Hancox. “And, loaning large sums of money for investment purposes is an inherently risky activity. Only those who have the professional skills to be able to evaluate the borrower's credit situation; and review, understand and confirm financial statements of the borrower should be involved in this market.”
As stated as part of the settlement agreement, there were mitigating factors, including that Trites did not know his actions were in violation of securities laws, he accepted responsibility for his actions and has paid the consequences. The order includes an administrative penalty of $10,000; $12,000 in disgorgement to be repaid to the investors, an amount corresponding to the sales commission he was paid for his role in securing certain of the loans, and $2,000 in costs. Trites is also denied the use of any exemptions in securities law for five years.
The New Brunswick Securities Commission is an independent provincial Crown corporation responsible for regulating trading in securities within the province. For more information about these matters, please refer to the motion materials available on the commission's website under Enforcement then click on Recent Decisions.
The Canadian Securities Administrators' Disciplined Persons List contains information relating to persons disciplined by provincial securities regulators, the Investment Industry Regulatory Organization of Canada and the Mutual Fund Dealers Association of Canada.
Being an informed investor is your best defence against investment fraud. Learn how to protect yourself by taking advantage of the materials available on the commission's website. The public may also contact the commission's investor services co-ordinator at 506-658-3060 or 1-866- 933-2222 (toll-free) to get further information, to make a complaint or to express other investment-related concerns.