OSC | OSC Proceedings - Before the Commission

IN THE MATTER OF THE SECURITIES ACT,
R.S.O. 1990, c. S. 5, AS AMENDED

AND

IN THE MATTER OF BRIAN PETER VERBEEK

TORONTO – The Commission issued its Decision and Reasons on Sanctions in the above noted matter.

The Commission ordered that:

▪ Brian Peter Verbeek’s registration is terminated;
▪ he cease trading permanently, except that he may trade for the purposes of his own RRSP;
▪ exemptions available under Ontario securities law will not apply to him;
▪ Mr. Verbeek must resign as a Director or Officer of any issuer and is prohibited from holding such positions in the future;
▪ Mr. Verbeek is reprimanded; and
▪ Mr. Verbeek pay $94,618.75 in costs, pursuant to section 127.1 of the Securities Act.

On July 26, 2005, the Commission found, after the hearing on the merits, that Mr. Verbeek was a registered representative whose conduct was contrary to the Securities Act and the public interest. The Commission found that Mr. Verbeek participated in a scheme in which holders of locked-in RRSPs purchased securities in Canadian Controlled Private Corporations (CCPCs) in exchange for loans from the CCPCs for 60% to 80% of the share purchase price. The holders were mainly low-income, unsophisticated investors having few investments beyond their locked-in RRSPs. The Commission found, among other things, that Mr. Verbeek failed to consider the holders’ investment needs and the suitability of the high-risk CCPC securities.

A copy of the Order is available at www.osc.gov.on.ca

OFFICE OF THE SECRETARY
JOHN P. STEVENSON
SECRETARY