BC man faces bans for breaching cease trade order

BC man faces bans for breaching cease trade order

BC man faces bans for breaching cease trade order A news release from the BCSC has announced a ruling that BC resident Richard Dean Reoji Nawata committed grave misconduct by contravening an existing cease trade order against his company, Military International Limited (MIL).

An Alberta company, MIL had at one point been issuing shares for trading on the TSX Venture Exchange. On December 11, 2002, the executive director of the BCSC ordered a stop on all trading in MIL’s securities until the firm filed required records. The order is still in force.

The violation of the cease trade order occurred between November 2010 and December 2011, when MIL raised $170,000 from six investors, and entered into loan agreements with and issued promissory notes to those investors. Nawata, who was the president, CEO, and director of record of the company, signed the loan agreements and promissory notes.

The settlement agreement states that the act of entering into these investments constitutes a violation of the cease trade order, and the fact that Nawata authorized, permitted, and acquiesced in the company’s contravention means that he himself breached the order. He has paid the BCSC $6,000 and has agreed to resign from any position he holds as a director or officer of any issuer or registrant. He also faces multiple bans, including prohibition from acting as a director or officer of any issuer or registrant, acting as a registrant or promoter, acting in a management or consultative capacity in connection with activities in the securities market and engaging in investor relations activities.

“Nawata's bans are to remain in effect until the later of the date that he successfully completes a course of study on the duties of corporate officers and directors that is acceptable to the Executive Director and on October 13, 2017,” said the statement.


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