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ARTICLE · 26 NOVEMBER 2018

Re Fauth: A Primer On Ss. 75(1)(A), 92(4.1) And 93(B) Of Alberta's Securities Act

The Alberta Securities Commission (ASC) recently released its decision in the matter of Re Fauth, finding the respondent, Vernon Ray Fauth (Fauth),

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The Alberta Securities Commission (ASC) recently released its decision in the matter of Re Fauth, finding the respondent, Vernon Ray Fauth (Fauth), in breach of ss. 75(1)(a), 92(4.1) and 93(b) of Alberta's Securities Act, RSA 2000, c S-4 (the Act). The decision offers some important insight on issues regarding limitation periods, illegal dealing, misrepresentations, and fraud under the Act. The decision also discusses the use of hearsay evidence in proceedings before the Commission; specifically, the use of transcripts of witness interviews conducted by the Alberta Securities Commission Staff (Staff) in the course of their investigation.

Facts

Fauth operated a financial and estate planning business through Fauth Financial Group Ltd. (Fauth Financial), a corporation licensed to sell insurance and mutual funds. Fauth was also involved in a number of other corporations and limited partnerships:

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