A Vancouver securities lawyer’s suspension has been extended from four months to six months, according to a recent decision from a Law Society of BC review board.
In October 2021, Samuel Theodore Gray Cole was found to have committed professional misconduct after he counselled a Vancouver stock promoter and principal of a public company to perform insider trading.
In May 2023, Cole unsuccessfully appealed the administrative penalty of a four-month suspension and $20,000 fine.
Thereafter the society’s executive appealed the hearing panel’s decision, arguing the penalty ought to be a six-month suspension.
On Jan. 2, a society review board sided with the society’s executive, issuing Cole a six-month suspension while removing the $20,000 fine.
“This review board finds that the hearing panel made an error when it ordered a hybrid sanction (combination of suspension and fine),” the board concluded.
Cole committed the misconduct by counselling his client “KR” to use his girlfriend as a nominee to indirectly buy shares (via a private placement) so as to secure a reverse takeover of a private company (referred to as “M Co.”) by the public company KR directed.
The transactions occurred contrary to the directives of TSX-V officials.
The hearing panel described Cole as “evasive and selective in his answers.” He gave the impression that he was using his knowledge and experience as a lawyer to tailor his evidence rather than answer honestly and completely.
However, the panel also considered that Cole did not have a professional conduct record. Cole also tendered two supportive letters from colleagues at his current law firm.
Cole acknowledged his misconduct at the disciplinary hearing, and explained that he had taken steps to rehabilitate himself and that he understands the gravity of his conduct, the board stated.
.jpg;w=120;h=80;mode=crop)