Securities Decisions and Freeze and cease trade orders
Montréal – At the request of the Autorité des marchés financiers (AMF), the Bureau de décision et de révision en valeurs mobilières (BDRVM) issued an order on April 25, 2008 against Samuel Leemhuis, Future Growth Inc., Future Growth Limited, Future Growth Global Fund Limited, Future Growth Market Neutral Fund Limited and Future Growth World Fund to cease carrying on any activity, directly or indirectly, in respect of any transaction in securities.
The AMF believed it was imperative that the BDRVM issue this decision, with no prior hearing, to protect investors, given that Adrian Samuel Leemhuis, President of ASL Inc., a mutual fund dealer registered with the Securities Commission (OSC) and the Mutual Fund Dealers Association of (MFDA), and the above-named entities, which were incorporated under the laws of the British Virgin Islands, acted as securities dealers via the Internet, among other means, without being registered with the AMF. In addition, the securities of these entities were distributed without a prospectus approved by the AMF.
In its decision, the BDRVM expressed concern about the following AMF allegations:
- none of the funds referred to in the decision were registered in Québec or had filed a prospectus for the distribution of units with the AMF, nor were they registered elsewhere in Canada;
- the OSC issued a freeze trade order against Future Growth Global Fund Limited and Future Growth World Fund on approximately $8 million;
- the OSC also issued a cease trade order against all of the respondents;
- the website of Future Growth Group Inc. was still active on April 23, 2008 and continued to be used to solicit investments in the units of the funds referred to in the decision;
- Future Growth Group Inc. sold units of these funds to 165 investors;
- Adrian Samuel Leemhuis, a respondent in this matter, did not co-operate with the AMF, OSC and MFDA investigators.
The Autorité des marchés financiers (AMF) is the regulatory and oversight body for Québec’s financial sector.
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Frédéric Alberro (514) 940-2176
Québec City: 418-525-0337