British Columbia Securities Commission

British Columbia Securities Commission

December 02, 2010 14:30 ET

British Columbia Securities Commission: B.C. Man Who Contravened Securities Laws Banned for 20 Years

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 2, 2010) - A 52-year-old B.C. man received 20-year market prohibitions after admitting in a British Columbia Securities Commission settlement agreement that he illegally raised about $12 million from more than 140 investors.

Steven Brian Friedland, 52, did business as Western Liquid Funding (WLF), a sole proprietorship, and through Western Liquid Funding Inc. (WLF Inc.), a company he incorporated in Sept. 9, 2009.

In the settlement agreement, Friedland admitted that he, WLF and WLF Inc. traded securities when they entered into investment agreements that provided interest payments to investors and a return on capital. The respondents used investors' money to make bridge-financing loans.

The distributions were illegal because Friedland, WLF and WLF Inc. were not registered to trade securities and they did not file a prospectus with the BCSC for the investment agreements.

Friedland, WLF and WLF Inc. raised about $12 million from more than 140 investors, at least 100 of whom were B.C. residents. They paid interest in excess of $10 million and made substantial repayments of capital, but were unable to meet all of their obligations to investors.

When Friedland became aware the loan business was subject to regulation, he took steps to restructure it. In the course of restructuring, he disclosed the respondents' misconduct to BCSC staff. The respondents have cooperated with the commission, investors, and the bankruptcy trustee in this matter.

Friedland and WLF Inc. are bankrupt and unable to pay the $225,000 that would otherwise be appropriate in this matter.

For his misconduct, Friedland is banned, with limited exceptions, from trading and purchasing securities, and from becoming or acting as a director or officer of any issuer, registrant, or investment fund manager for 20 years. He is also prohibited, for the same period, from becoming or acting as a registrant, investment fund manager or promoter, from engaging in investor relations activities, and from acting in a management or consultative capacity in connection with activities in the securities market.

Under the agreement, WLF and WLF Inc. are permanently cease traded.

The B.C. Securities Commission is the independent provincial government agency responsible for regulating trading in securities within the province. You may view the settlement agreement on our website by typing in the search box, Steven Brian Friedland or Western Liquid Funding, or 2010 BCSECCOM 654. If you have questions, contact Ken Gracey, media relations, 604-899-6577.

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Contact Information

  • British Columbia Securities Commission
    Ken Gracey
    media relations
    604-899-6577 or (Canada) 1-800-373-6393