IN THE MATTER OF: THE SECURITIES ACT
-and-
IN THE MATTER OF: ROBERT WAYNE BENNETT and CELEBRATION OF YOUR FINANCIAL SUCCESS ONLINE INC.
STATEMENT OF ALLEGATIONS OF STAFF OF THE
MANITOBA SECURITIES COMMISSION
STAFF OF THE MANITOBA SECURITIES COMMISSION ALLEGE, AMONG OTHER THINGS, THAT:
A. STATEMENT OF FACTS
1. Robert Wayne Bennett (“Bennett”) was registered under The Securities Act of Manitoba (“Act”) as a salesman from February 13, 2001 to October 29, 2001.
2. Bennett has not been registered under the Act since October 29, 2001.
3. Celebration of Your Financial Success Online Inc. (“Celebration”) is not now and never has been registered in any capacity under the provisions of the Act.
4. At all material times, Celebration had not filed a preliminary prospectus, or a prospectus, with The Manitoba Securities Commission (“Commission”), nor had it applied for or been granted an exemption order under section 20 of the Act.
5. At all material times, Celebration had not filed any reports under clause 7 of the Regulation to the Act ("Regulation") or any notice under clause 91 of the Regulation with respect to any trades under section 19 of the Act or clauses 90 or 91 of the Regulation.
6. On September 14, 2005, Bennett and Celebration were each convicted in the Provincial Court of Manitoba (“court”) of eight (8) counts of offences under s.136(1)(c) of the Act, being 4 counts of trading without registration contrary to s.6(1) and 4 counts of trading without prospectus contrary to s.37(1).
7. The charges before the court for which Bennett and Celebration were found guilty were as follows:
COUNT 1
CELEBRATION OF YOUR FINANCIAL SUCCESS ONLINE INC. and ROBERT WAYNE BENNETT,
between the 1st day of April, 2002 and the 30th day of June, 2002, both dates
inclusive, at or near the City of Winnipeg, in the Province of Manitoba,
did trade in securities to Anita Chiola and Christian Welch, to wit: a share
of CELEBRATION OF YOUR FINANCIAL SUCCESS ONLINE INC. for consideration while
not registered under The Securities Act, contrary to Section 6(1) of The
Securities Act, and did thereby commit an offence pursuant to Section 136(1)(c)
of The Securities Act.
COUNT 2
CELEBRATION OF YOUR FINANCIAL SUCCESS ONLINE INC. and ROBERT WAYNE BENNETT,
between the 1st day of April, 2002 and the 30th day of June, 2002, both dates
inclusive, at or near the City of Winnipeg, in the Province of Manitoba,
did trade in securities in the course of a primary distribution to the public,
before a receipt for both a preliminary prospectus and a prospectus had been
obtained from the Director of The Manitoba Securities Commission, to wit:
a share of CELEBRATION OF YOUR FINANCIAL SUCCESS ONLINE INC. to Anita Chiola
and Christian Welch for consideration contrary to Section 37(1) of The Securities
Act, and did thereby commit an offence pursuant to Section 136(1)(c) of The
Securities Act.
COUNT 3
CELEBRATION OF YOUR FINANCIAL SUCCESS ONLINE INC. and ROBERT WAYNE BENNETT,
between the 1st day of April, 2002 and the 30th day of June, 2002, both dates
inclusive, at or near the City of Winnipeg, in the Province of Manitoba,
did trade in securities to Matthew Chrunyk, to wit: shares of CELEBRATION
OF YOUR FINANCIAL SUCCESS ONLINE INC. for consideration of $21,000.00 while
not registered under The Securities Act, contrary to Section 6(1) of The
Securities Act, and did thereby commit an offence pursuant to Section 136(1)(c)
of The Securities Act.
COUNT 4
CELEBRATION OF YOUR FINANCIAL SUCCESS ONLINE INC. and ROBERT WAYNE BENNETT,
between the 1st day of April, 2002 and the 30th day of June, 2002, both dates
inclusive, at or near the City of Winnipeg, in the Province of Manitoba,
did trade in securities in the course of a primary distribution to the public,
before a receipt for both a preliminary prospectus and a prospectus had been
obtained from the Director of The Manitoba Securities Commission, to wit:
shares of CELEBRATION OF YOUR FINANCIAL SUCCESS ONLINE INC. to Matthew Chrunyk
for consideration of $21,000.00 contrary to Section 37(1) of The Securities
Act, and did thereby commit an offence pursuant to Section 136(1)(c) of The
Securities Act.
COUNT 5
CELEBRATION OF YOUR FINANCIAL SUCCESS ONLINE INC. and ROBERT WAYNE BENNETT,
between the 1st day of April, 2002 and the 30th day of June, 2002, both dates
inclusive, at or near the City of Winnipeg, in the Province of Manitoba,
did trade in securities to Marcos Pavon, to wit: shares of CELEBRATION OF
YOUR FINANCIAL SUCCESS ONLINE INC. for consideration of $4,500.00 while not
registered under The Securities Act, contrary to Section 6(1) of The Securities
Act, and did thereby commit an offence pursuant to Section 136(1)(c) of The
Securities Act.
COUNT 6
CELEBRATION OF YOUR FINANCIAL SUCCESS ONLINE INC. and ROBERT WAYNE BENNETT,
between the 1st day of April, 2002 and the 30th day of June, 2002, both dates
inclusive, at or near the City of Winnipeg, in the Province of Manitoba,
did trade in securities in the course of a primary distribution to the public,
before a receipt for both a preliminary prospectus and a prospectus had been
obtained from the Director of The Manitoba Securities Commission, to wit:
shares of CELEBRATION OF YOUR FINANCIAL SUCCESS ONLINE INC. to Marcos Pavon
for consideration of $4,500.00 contrary to Section 37(1) of The Securities
Act, and did thereby commit an offence pursuant to Section 136(1)(c) of The
Securities Act.
COUNT 7
CELEBRATION OF YOUR FINANCIAL SUCCESS ONLINE INC. and ROBERT WAYNE BENNETT,
between the 1st day of April, 2002 and the 30th day of June, 2002, both dates
inclusive, at or near the City of Winnipeg, in the Province of Manitoba,
did trade in securities to Michael Chrunyk, to wit: by attempting to sell
or dispose of or by engaging in other dealings in or solicitation in respect
of shares of CELEBRATION OF YOUR FINANCIAL SUCCESS ONLINE INC. for valuable
consideration or by such act, advertisement, conduct or negotiation directly
or indirectly in furtherance of any of the foregoing, while not registered
under The Securities Act, contrary to Section 6(1) of The Securities Act,
and did thereby commit an offence pursuant to Section 136(1)(c) of The Securities
Act.
COUNT 8
CELEBRATION OF YOUR FINANCIAL SUCCESS ONLINE INC. and ROBERT WAYNE BENNETT,
between the 1st day of April, 2002 and the 30th day of June, 2002, both dates
inclusive, at or near the City of Winnipeg, in the Province of Manitoba,
did trade in securities in the course of a primary distribution to the public,
before a receipt for both a preliminary prospectus and a prospectus had been
obtained from the Director of The Manitoba Securities Commission, to wit:
by attempting to sell or dispose of or by engaging in other dealings in or
solicitation in respect of shares of CELEBRATION OF YOUR FINANCIAL SUCCESS
ONLINE INC. for valuable consideration or by such act, advertisement, conduct
or negotiation directly or indirectly in furtherance of any of the foregoing
to Michael Chrunyk, contrary to Section 37(1) of The Securities Act, and
did thereby commit an offence pursuant to Section 136(1)(c) of The Securities
Act.
6. The Director, Legal and Enforcement (“Director”) of the Commission has received applications from Mr. A and from Mr. B for claims for compensation for financial loss. The Director requests that the Commission order financial loss compensation in amounts to be determined at or prior to the hearing.
B. ALLEGATIONS
1. Staff of the Commission allege that Bennett and Celebration:
(a) traded in securities without having been registered and without prospectus in contravention of sections 6 and 37 of the Act;
and that due to these allegations, Bennett and Celebration should not be entitled to use any of the exemptions set out in the Act and should not be entitled to participate in the exempt markets in Manitoba in the future, and furthermore Bennett and Celebration should be ordered to pay compensation for financial loss pursuant to section 148.2 of the Act, and still further that an administrative penalty pursuant to section 148.1(1) of the Act should be ordered against Bennett and Celebration.
2. Such further and other matters as counsel may advise and the Commission may permit.
DATED at Winnipeg, Manitoba this 16th day of May, 2006.
Director, Legal and Enforcement
TO: ROBERT WAYNE BENNETT
AND TO: CELEBRATION OF YOUR FINANCIAL SUCCESS ONLINE INC.