Learn more about what the ASC is doing to support market participants and investors.
Feb 09, 2021
CALGARY – February 9, 2021 – The Alberta Securities Commission (ASC) has sanctioned Kenton Roy Rustulka for breaching the “know your client” (KYC) and suitability obligations he owed to his clients, and for making material misrepresentations regarding general and specific risks associated with exempt market securities.
From January 2013 to June 2016, while employed with WealthTerra Capital Management Inc. (WealthTerra) as an exempt market dealing representative, Rustulka sold approximately $6,500,000 in exempt market securities through WealthTerra, and earned approximately $463,000 in associated commissions. He was found to have reported false and misleading information on KYC forms and to have failed to properly identify his clients’ investment needs, objectives, financial circumstances and risk tolerances, including misrepresenting the purpose of the risk acknowledgment forms they signed.
An ASC panel ordered that Rustulka pay an administrative penalty of $100,000, disgorgement to the ASC in the amount of $99,242.37 and $55,000 towards the costs of the investigation and hearing. The panel also ordered permanent market access bans against Rustulka.
In its decision, the panel noted that “Rustulka knowingly failed to execute his core responsibilities as a registrant by recommending investments that were entirely unsuitable for his clients. He deliberately misrepresented the risks of the investments and strategies he presented, and exploited his clients' trust in him [as a past police officer and pastor] in the interest of selling more securities."
A copy of the decision is available on the ASC website at albertasecurities.com.
The ASC is the regulatory agency responsible for administering the province’s securities laws. It is entrusted to foster a fair and efficient capital market in Alberta and to protect investors. As a member of the Canadian Securities Administrators, the ASC works to improve, coordinate and harmonize the regulation of Canada's capital markets.
- 30 -
For further information please contact:
For Media Inquiries:
Theresa Schroder Senior Advisor, Communications 403.297.4231
For Investor Inquiries:
ASC Public Inquiries Toll Free: 1-877-355-4488