Ray Sasseville, who headed the 2011 Sturgis North motorcycle rally and music festival in Salmon Arm, is in trouble with the BC Securities Commission.
The commission issued a news release June 4 announcing that Raymond Michael Roger Sasseville, Edith Marie Sasseville and Richard Keller illegally distributed securities of a company named Wireless Wizard Technologies Inc. (WWTI) in 2007 and 2008.
A commission panel found that WWTI and Keller distributed a convertible debenture to an investor (known as ‘Investor A’) for total proceeds of $10,000 “without being registered, without a prospectus, and for which no exemptions were available.”
The panel also found that WWTI, Ray Sasseville and Keller illegally distributed securities by distributing a convertible debenture to an investor (known as ‘Investor B’) for total proceeds of US$47,500.
Edith and Ray Sasseville were also found to have breached securities law by authorizing, permitting and acquiescing in the distribution of the WWTI convertible debentures to Investor A and Investor B.
All three defendants are B.C. residents, and none have ever been registered to sell securities under the Securities Act. WWTI’s purported business was to develop and market a global positioning system (GPS) for motorcycles, and a wireless technology for conducting sales via text message. The company has never filed a prospectus in B.C.
Although the panel considered other allegations prior to Dec. 18, 2007, it found them “to be outside of the allowable limitation period under the Securities Act.” The act states that proceedings can’t begin more than six years after the date of the events. The original allegations included the period from May 2007 to January 2008, and involved eight investors and a total of $162,500.
The parties involved will make submissions to the BC Securities Commission regarding sanctions on June 26 and July 10. A decision will be made sometime after July 17. Sanctions generally take the form of a monetary penalty or a ban from trading or being involved in securities markets in B.C.
In 2003, Ray Sasseville also faced allegations of illegal distribution of securities, but involving a different issuer, A.W. Auto Watch Group Inc., with its head office in Westbank, B.C. At that time Sasseville admitted he illegally raised more than $750,000 from 75 investors between Feb 1998 and December 2001, states a securities commission document.
He was ordered to pay $10,000 and was prohibited from acting as a director and officer of any securities issuer, or from engaging in investor relations activities on behalf of any issuer, for a minimum of three years.
As for Sturgis North, although some businesses in Salmon Arm were paid in 2011, the motorcycle rally and music festival left behind debts which are still outstanding.
A 2012 Sturgis North event was held near Vernon at the Spallumcheen Motoplex Speedway and Event Park, and a 2013 festival was proposed for Silvery Beach near Chase, and later Merritt, but was cancelled.
A 2014 version of the music festival in Merritt named Sturgis Canada flopped, with Sunday’s lineup refusing to take the stage due to money concerns.