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Temporary Cease-Trade Order issued against Texas Energy Mutual

Cease Trade Order.

A temporary cease trade order was issued on 7 January against Texas Energy Mutual LLC, Fred Wolk, Len Vuolo, and Jay MacDonald Snyder (Respondents), by the Financial and Consumer Services Tribunal (Tribunal).

The ex parte order follows an investigation by the Financial and Consumer Services Commission (FCNB) into concerns reported by a New Brunswick resident.  

The order was issued following the presentation of an application to the Tribunal by FCNB staff regarding alleged violations of the Securities Act. The application presented evidence that the respondents recently solicited a New Brunswick resident to invest in an oil-drilling venture in Oklahoma, and promised returns of more than 30 per cent on the investment.  The resident did not invest and instead reported the solicitation to the FCNB.

The respondents are not registered to trade in securities in New Brunswick and have not filed a prospectus or a Report of Exempt Distribution with FCNB.

The temporary order states that the respondents must cease trading in all securities, that all securities issued by the respondents must cease to be traded and that any exemptions in New Brunswick securities law do not apply.

The Tribunal will hold a hearing at 10 a.m. on 21 January at their offices located at 85 Charlotte Street, Saint John.  The hearing is to determine if the temporary order should be made permanent and if any further orders are required.

The Financial and Consumer Services Commission provides protection to consumers and investors from unfair, improper or fraudulent practices.

The Financial and Consumer Services Commission brings together regulatory authorities for securities, insurance, pensions, consumer affairs, co-operatives, credit unions, caisses populaires, and loan and trust companies. It is an arm’s-length Crown Corporation self-funded by the fees and assessments paid by the regulated sectors.