Proceedings

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

- and -

IN THE MATTER OF
ROBERT LAUDY WILLIAMS

STATEMENT OF ALLEGATIONS
OF STAFF OF THE ONTARIO SECURITIES COMMISSION



TAKE NOTICE THAT the Ontario Securities Commission (the "Commission") will hold a hearing pursuant to subsections 127(1) and 127(10) of the Securities Act, R.S.O. 1990, c. S.5, as amended (the "Act"), at the offices of the Commission, 20 Queen Street West, 17th Floor, Toronto, Ontario commencing on October 26, 2015 at 11:00 a.m.;

TO CONSIDER whether, pursuant to paragraphs 4 and 5 of subsection 127(10) of the Act, it is in the public interest for the Commission to make an order:

1. against Robert Laudy Williams ("Laudy Williams") that:

a. pursuant to paragraph 2 of subsection 127(1) of the Act, trading in any securities by Laudy Williams cease until May 7, 2017, except that he may trade securities through one account in his own name through a registrant if he first provides a copy of the Order of the British Columbia Securities Commission (the "BCSC") dated May 7, 2015 (the "BCSC Order"), and a copy of the Order of the Commission in this proceeding, if granted, to the registrant;

b. pursuant to paragraph 2.1 of subsection 127(1) of the Act, acquisition of any securities by Laudy Williams be prohibited until May 7, 2017, except that he may purchase securities through one account in his own name through a registrant if he first provides a copy of the BCSC Order, and a copy of the Order of the Commission in this proceeding, if granted, to the registrant;

c. pursuant to paragraphs 8 and 8.2 of subsection 127(1) of the Act, Laudy Williams be prohibited until May 7, 2017 from becoming or acting as an officer or director of any issuer or registrant;

d. pursuant to paragraph 8.5 of subsection 127(1) of the Act, Laudy Williams be prohibited until May 7, 2017 from becoming or acting as a registrant or promoter; and

2. to make such other order or orders as the Commission considers appropriate.

BY REASON of the allegations set out in the Statement of Allegations of Staff of the Commission dated September 28, 2015 and by reason of a Settlement Agreement between Laudy Williams and the BCSC dated May 7, 2015, (the "Settlement Agreement") in which Laudy Williams consents to a regulatory order made by any provincial or territorial securities regulatory authority in Canada containing any or all of the Orders set out at paragraph 2 of the Settlement Agreement, the BCSC Order, and such additional allegations as counsel may advise and the Commission may permit;

AND TAKE FURTHER NOTICE that any party to the proceeding may be represented by counsel at the hearing;

AND TAKE FURTHER NOTICE that upon failure of any party to attend at the time and place aforesaid, the hearing may proceed in the absence of the party and such party is not entitled to any further notice of the proceeding;

AND TAKE FURTHER NOTICE that the Notice of Hearing is also available in French, participation may be in either French or English and participants must notify the Secretary's Office in writing as soon as possible, and in any event, at least thirty (30) days before a hearing if the participant is requesting a proceeding to be conducted wholly or partly in French; and

ET AVIS EST ÉGALEMENT DONNÉ PAR LA PRÉSENTE que l'avis d'audience est disponible en français, que la participation à l'audience peut se faire en français ou en anglais et que les participants doivent aviser le Bureau du secrétaire par écrit le plut tôt possible et, dans tous les cas, au moins trente (30) jours avant l'audience si le participant demande qu'une instance soit tenue entièrement ou partiellement en français.

DATED at Toronto this 28th day of September, 2015.

"Josée Turcotte"
Secretary to the Commission

 

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

STATEMENT OF ALLEGATIONS OF STAFF OF THE ONTARIO SECURITIES COMMISSION

Staff of the Ontario Securities Commission ("Staff") allege:

I. OVERVIEW

1. On May 7, 2015, Robert Laudy Williams ("Laudy Williams") entered into a Settlement Agreement (the "Settlement Agreement") with the British Columbia Securities Commission (the "BCSC").

2. Laudy Williams is subject to an order made by the BCSC dated May 7, 2015 (the "BCSC Order") that imposes sanctions, conditions, restrictions or requirements upon him.

3. Staff are seeking an inter-jurisdictional enforcement order reciprocating the BCSC Order, pursuant to paragraphs 4 and 5 of subsection 127(10) of the Ontario Securities Act, R.S.O. 1990, c. S.5, as amended (the "Act").

4. The conduct for which Laudy Williams was sanctioned took place from May 2007 to June 2009 (the "Material Time").

5. In the Settlement Agreement, Laudy Williams admitted to trading in securities without being registered and engaging in an illegal distribution of securities by introducing three investors to Thomas Arthur Williams ("Williams") during the Material Time, for which Laudy Williams received commissions. The three individuals became investors, to whom no exemptions applied, and collectively invested $110,000 in one or more companies.

II. THE BCSC PROCEEDINGS

Agreed Statement of Facts

6. In the Settlement Agreement, Laudy Williams agreed with the following facts:

Background

a. Laudy Williams is a resident of British Columbia.

b. Between May 2007 and June 2009, Laudy Williams introduced three individuals to Williams who became investors in one or more of the following companies:

i. Global Wealth Creation Opportunities Inc.;

ii. Global Wealth Creation Opportunities (Belize);

iii. Global Wealth Financial Inc.;

iv. Global Wealth Creation Strategies Inc.;

v. CDN Global Wealth Creation Club RW-TW; and

vi. 2002 Concepts Inc.

(collectively, the "Global Group of Companies").

c. Laudy Williams has never been registered under the British Columbia Securities Act, R.S.B.C. 1996, c. 418 (the "BC Act") in any capacity.

d. No prospectus has ever been filed with the BCSC in respect of the distribution of securities of the Global Group of Companies.

Misconduct

Illegal Distribution

e. Between February 2007 and April 2010, Williams and the Global Group of Companies raised approximately $11.7 million from approximately 123 investors.

f. Laudy Williams introduced three investors, to whom no exemptions applied, to the Global Group of Companies. The investors Laudy Williams introduced collectively invested $110,000.

g. Laudy Williams received $8,775 in commissions.

h. By introducing investors to the Global Group of Companies, Laudy Williams:

i. traded in securities without being registered, contrary to section 34(a) of the BC Act, and

ii. distributed securities for which a prospectus has not been filed, contrary to section 61 of the BC Act.

The BCSC Order

7. The BCSC Order imposed the following sanctions, conditions, restrictions or requirements upon Laudy Williams:

a. For a period of 2 years:

i. under section 161(1)(b) of the BC Act, Laudy Williams cease trading in, or be prohibited from purchasing, any securities, except that he may trade securities through one account in his own name through a registrant if he first provides a copy of the BCSC Order to the registrant;

ii. under section 161(1)(d)(ii) of the BC Act, Laudy Williams is prohibited from becoming or acting as a director or officer of any issuer or registrant;

iii. under section 161(1)(d)(iii) of the BC Act, Laudy Williams is prohibited from becoming or acting as a registrant or promoter;

iv. under section 161(1)(d)(iv) of the BC Act, Laudy Williams is prohibited from acting in a management or consultative capacity in connection with activities in the securities market; and

v. under section 161(1)(d)(v) of the BC Act, Laudy Williams is prohibited from engaging in investor relations activities.

Undertaking

8. Laudy Williams undertook to pay to the BCSC a total of $8,775 in respect of settlement of the matter, which was due and payable at the time of execution of the Settlement Agreement.

Consent to Regulatory Orders

9. Laudy Williams consents to a regulatory order made by any provincial or territorial securities regulatory authority in Canada containing any or all of the Orders set out in paragraph 2 of the Settlement Agreement.

III. JURISDICTION OF THE ONTARIO SECURITIES COMMISSION

10. Laudy Williams is subject to an order of the BCSC that imposes sanctions, conditions, restrictions or requirements upon him.

11. Pursuant to paragraphs 4 and 5, respectively, of subsection 127(10) of the Act, an order made by a securities regulatory authority, derivatives regulatory authority or financial regulatory authority, in any jurisdiction, that imposes sanctions, conditions, restrictions or requirements on a person or company, or an agreement with a securities regulatory authority, derivatives regulatory authority or financial regulatory authority, in any jurisdiction, that a person or company is to be made subject to sanctions, conditions, restrictions or requirements on the person or company may form the basis for an order in the public interest made under subsection 127(1) of the Act.

12. Staff allege that it is in the public interest to make an order against Laudy Williams.

13. Staff reserve the right to amend these allegations and to make such further and other allegations as Staff deem fit and the Commission may permit.

DATED at Toronto, this 28th day of September, 2015.