Released on February 15, 2006
The Saskatchewan Financial Services Commission issued a decision on February 9th, 2006, after a two day hearing into the sale of shares of Euston Capital Corporation.Euston, based in Toronto, claimed to offer opportunities in cross-border sales of pharmaceuticals. The corporation raised $216,240 from 50 Saskatchewan investors from September 2003 to December 2004. George Schwartz was in charge of the operation. Charles Saks and Norman McLeod sold the shares.
The Commission found that Euston, Schwartz, Saks and McLeod broke Saskatchewan securities laws when they sold Euston shares. Euston was not registered and had not filed a prospectus. It claimed to use an exemption that permitted sales to accredited investors who had an annual income of $200,000 or financial assets of $1 million.
The Commission found that the Euston salespersons made no effort to find out whether Euston investors were qualified as accredited investors. None of the six investors who testified at the hearing met the criteria.
The Commission issued a 10-year cease trading order against Euston and George Schwartz, and issued a five-year order against Charles Saks and Norman MacLeod. It ordered Euston and Swartz to each pay a $50,000 administrative penalty. Saks and MacLeod were each ordered to pay $25,000, and Schwartz was also ordered to pay hearing costs of $14,622.
The complete decision is available online at the Commission Web site at www.sfsc.gov.sk.ca.
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For More Information, Contact:
| Dave Wild Saskatchewan Financial Services Commission Regina Phone: (306) 787-5630 |