ASC settlement agreement results in $55K payment by director and corp

The Alberta Securities Commission (ASC) has concluded a settlement agreement with a firm and corporate director who admitted to illegal distributions of firm securities.

Under the agreement, Edmonton-based Umbrella Merchant Services and its sole director, Shane David Yawrenko, admitted to raising more than $2 million from at least 33 investors, most of whom were Alberta residents, in exchange for shares of Umbrella from 2013 to 2016. The company “purported” to be in the business of raising money for a business venture in Mexico related to point-of-sale technology and advertising for taxi cabs, the agreement says.

Yawrenko and Umbrella never filed a prospectus with the commission, and at least half of the investors didn’t qualify for exemptions under the Securities Act, the agreement says.

It also says neither Yawrenko nor Umbrella has been previously sanctioned by the commission, and notes that the agreement saved the commission time and expense associated with a contested hearing under the act.

Based on agreed facts and admitted breaches, Yawrenko and Umbrella paid the ASC $55,000.

Further, Umbrella agreed to refrain from using any prospectus and registration exemptions contained in Alberta securities laws for a period of five years.

For the same time period, Yawrenko agreed to refrain from trading in or purchasing any securities or derivatives (with limited exceptions) and from using any exemptions contained in Alberta securities laws.

Yawrenko also agreed to refrain from becoming or acting as a director or officer of an issuer, registrant or investment fund manager in Alberta or elsewhere in Canada for five years. Further, he agreed to refrain from becoming or acting as a registrant, investment fund manager or promoter for five years, and from acting in a management or consultative capacity in connection with market activities.

Read the full settlement agreement.

Staff

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