CALGARY – August 20, 2018 - The Alberta Securities Commission (ASC) has concluded a Settlement Agreement with Shane David Yawrenko and Umbrella Merchant Services Inc., who have admitted to illegal distributions of Umbrella Merchant securities.
Under the Settlement Agreement, Yawrenko and Umbrella Merchant admitted that from 2013 to 2016, they raised more than two million dollars from at least 33 investors, most of whom were Alberta residents, in exchange for shares of Umbrella Merchant. At least half of the investors did not qualify for any exemptions under the Act. No preliminary prospectus or prospectus was filed with the Commission, nor a receipt issued, for the Umbrella Merchant securities.
Yawrenko, an Edmonton resident, and Umbrella Merchant paid the ASC $55,000 as part of the Settlement Agreement. Umbrella Merchant agreed to refrain from using any prospectus and registration exemptions contained in Alberta securities laws for a period of 5 years. Yawrenko also agreed, for a period of 5 years, to refrain from:
- trading in or purchasing any securities or derivatives (with limited exceptions);
- using any exemptions contained in Alberta securities laws;
- becoming or acting as a director or officer, or both, of any issuer, registrant or investment fund manager in Alberta or elsewhere in Canada and to resign any positions he has as a director or officer, or both, of any issuer, registrant, or investment fund manager;
- becoming or acting as a registrant, investment fund manager or promoter; and
- acting in a management or consultative capacity in connection with activities in the securities market.
A copy of the Settlement Agreement is available on the ASC website at albertasecurities.com.
The ASC is the regulatory agency responsible for administering the province's securities laws. It is entrusted with fostering a fair and efficient capital market in Alberta and with protecting investors. As a member of the Canadian Securities Administrators, the ASC works to improve, coordinate and harmonize the regulation of Canada's capital markets.
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