ENFORCEMENT SUMMARY
IN THE MATTER OF The Securities Act
(the "Act")
AND IN THE MATTER OF KENNETH DRIEDGER
CHARGES
On April 26, 2005, Judge Cummings of the Provincial Court of Manitoba accepted the guilty pleas of Kenneth Driedger ("Driedger") to seventeen counts of offences under section 136(1)(c) of The Securities Act of Manitoba (the "Act") being nine counts of trading without registration contrary to section 6(1) of the Act and eight counts of trading without prospectus contrary to section 37(1) of the Act.
SUMMARY
Driedger acted as a representative for entities known as "Blue Storm" and "White Tiger" which were promoting high yield investments. Driedger dealt directly with nine investors who invested the sum of approximately $160,000.00 USD inclusive of investments which were rolled into additional investments. In addition, Driedger recruited others to solicit funds for the investments being promoted. The investments were described in various ways such as "bank debentures", "high yield instruments", and "trades". All the investments described included high rates of return varying from 25% to 250%, depending on the length of time held. Some investors received returns and the losses to the investors Driedger dealt with directly was approximately $97,500 USD.
SENTENCE
Driedger was sentenced on April 26, 2005 before Judge Cummings of the Provincial Court of Manitoba. A fine of $11,000 was imposed. Judge Cummings waived payments of costs in light of Mr. Driedger being in receipt of employment insurance benefits. There was no evidence that Driedger profited from the activity engaged in. Driedger advised he also invested and had lost monies as well.
The Manitoba Securities Commission
June 29, 2005