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by Mike Caswell

The Court of Appeal for British Columbia has upheld a professional misconduct finding against Vancouver securities lawyer Sam Cole. He advised a client on a way to get around an insider restriction in a private placement, having the client buy the stock through an account in the name of his then-girlfriend. Mr. Cole provided the advice while knowing that his client was not allowed to participate in the placement.

The loss for Mr. Cole is contained in a judgment released on Tuesday, May 16. The case arises from advice that Mr. Cole gave to a client, Vancouver promoter Keir Reynolds, in 2014. (The judgment only refers to Mr. Reynolds as "KR" and shortens the names of the companies involved in a similar fashion, but the circumstances make it clear that Mr. Reynolds or a company associated with him was the client.) At the time, Mr. Reynolds was looking to take a company public through the reverse takeover of a shell on the TSX Venture Exchange. His company produced high-end briefcases and luggage. Mr. Cole advised him on the regulatory requirements associated with the transaction, among other things.

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