VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 10, 2013) - The executive director of the British Columbia Securities Commission has issued a notice of hearing alleging that an Israeli citizen currently residing in Vancouver breached securities laws by illegally distributing securities on a website, and by making false statements while promoting a purported investment on Craigslist.
The notice alleges that Daveed Zarr (a.k.a. Asi Lalky) created a website for Zarr Energy Corporation that offered to sell shares in the company, despite the fact that Zarr is not registered to trade securities and Zarr Energy has never filed a prospectus in B.C.
The notice states that in September 2010, Zarr created a website for Zarr Energy. The website offered 20 million shares in the company at $1.00 per share.
In December 2011, Zarr posted an online classified advertisement promoting the investment in the Financial Services section of Vancouver's Craigslist website. Zarr stated that investors would earn a 50% annual return if they agreed to open a foreign exchange trading account containing $250,000 and give Zarr trading authority over the account. Zarr failed to mention that there would be risk associated with such a high rate of return.
In response to an email inquiry from a commission investigator posing as an investor, Zarr represented that he was a "professional currency trader" and reiterated that investors would earn a 50% annual return. Both of these statements were false or misleading.
These allegations have not been proven. Counsel for the executive director will apply to set dates for a hearing into the allegations before a panel of commissioners on Tuesday, May 28, 2013, at 9:00 a.m.
The B.C. Securities Commission is the independent provincial government agency responsible for regulating trading in securities within the province. You may view the notice of hearing on our website www.bcsc.bc.ca by typing Daveed Zarr, Zarr Energy Corporation or 2013 BCSECCOM 35 in the search box. Information regarding disciplinary proceedings can be found in the Enforcement section of the BCSC website.
Please visit the Canadian Securities Administrators' Disciplined Persons List for information relating to persons disciplined by provincial securities regulators, the Investment Industry Regulatory Organization of Canada (IIROC) and the Mutual Fund Dealers Association (MFDA).
If you have questions, contact Richard Gilhooley, media relations, 604-899-6713. For public inquiries, call 604 899 6854 or 1 800 373 6393 (toll free).
Learn how to protect yourself and become a more informed investor at www.investright.org.