British Columbia Securities Commission

British Columbia Securities Commission

November 18, 2010 09:00 ET

BCSC Executive Director's Bulletin: Securities Regulator Alleges B.C. Man Illegally Traded and Distributed Securities

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 18, 2010) - The executive director of the British Columbia Securities Commission has issued a notice of hearing alleging that a B.C. man and the company he controls illegally traded and distributed securities when they raised approximately $4.1 million from investors.

The notice of hearing says that, between 2001 and 2008, Theodore Nitta, a B.C. resident, sold approximately $12.4 million in securities of Venturex Global Investment Corporation to about 82 persons for financing private schools in the U.S. and Canada.

The notice alleges that:

  • Of the total capital raised, the distributions to approximately 60 investors for net proceeds of about $4.1 million did not qualify for exemptions from the registration and prospectus requirements under B.C. securities laws
  • Nitta, a former mutual fund salesperson and licensed insurance agent, targeted his clientele and sold Venturex to them as an investment opportunity
  • Venturex, a B.C. incorporated company, failed to file exempt distribution reports with the BCSC

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 Dec. 14, 2010.

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. If you have questions, contact Ken Gracey, media relations, 604-899-6577.

Contact Information

  • British Columbia Securities Commission
    Ken Gracey
    Media Relations
    604-899-6577 or (Canada) 1-800-373 6393
    www.bcsc.bc.ca