The court hears arguments in case #29472, Executive Director of the British Columbia Securities Commission v. Robert Arthur Hartvikson and Blayne Barry Johnson, on November 7, 2003.
In 1994, Robert Hartvikson, Blayne Johnson, and six other securities brokers working for First Marathon Securities purchased shares in Cartaway Container Corporation. They subsequently renamed the company and substantially changed the company’s business activities. Then, without disclosing this change to investors, they sold shares in the company, with First Marathon acting as the agent. Owing to the manner in which the sale was handled, the B.C. Securities Commission found that Mr. Hartvikson and Mr. Johnson had breached section 61 of the Securities Act and sought the maximum allowable penalty of $100,000. However, the B.C. Court of Appeal reduced the amount of the penalty. The Executive Director of the B.C. Securities Commission is appealing that decision to the Supreme Court.
Lawyer James Angus presents arguments on behalf of the Executive Director of the B.C. Securities Commission. Lawyer Jay Naster presents arguments on behalf of the Ontario Securities Commission, an intervener in the case.