The representative engaged in unapproved business activities with Anahit International, CanBud, and Zenith
The Canadian Investment Regulatory Organization (CIRO) held a hearing on January 23, where a panel accepted a settlement agreement between CIRO Enforcement Staff and Jason Andrew Gold.
Gold admitted to engaging in unapproved outside business activities (OBAs) between August 2019 and October 2021, violating Dealer Member Rule 18.14.
Under the terms of the settlement, Gold agreed to pay a $20,000 fine and $5,000 in costs.
Gold worked as an investment representative at Gravitas Securities Inc. from August 2019 to June 2022 and served as an assistant to Registered Representative Darren Carrigan. During this time, Gold failed to disclose his involvement in several private business transactions.
Anahit International Corp., a cannabis company, was founded in 2017 by Carrigan and two associates. Gold owned 1,250,000 shares of Anahit in an account at Gravitas.
On April 16, 2020, Carrigan informed Gold and others via email that Anahit had signed a letter of intent to be acquired by New Wave Holdings Corp. Before completing the transaction, Gold, Carrigan, and Carrigan’s holding companies sold or transferred Anahit shares in private transactions.
Gold did not disclose these activities to Gravitas.
Before joining Gravitas, Gold invested in Cannabis Clonal Corporation, a private company that later became CanBud Distribution Corp. (CBDX).
CanBud went public on the Canadian Securities Exchange on October 9, 2020. Gold received 450,000 CanBud shares in his Gravitas account from his initial investment.
In November 2020, CanBud approached Carrigan about a business opportunity in the Caribbean. On November 18, 2020, Carrigan transferred 75 of his 100 shares in his private company, 2688453 Ltd., to four of his clients, including Gold, who received 13 shares.
CanBud purchased 100 percent of 2688453 Ltd. on December 4, 2020. A CanBud press release on December 7, 2020, stated that the acquisition was an arm’s-length transaction.
However, Gold had been a CanBud shareholder before it became a public company, and one of Carrigan’s clients was CanBud’s CEO.
On April 15, 2021, Gold received shares as compensation for the sale of 2688453 Ltd. and later sold all of them. By October 2021, CanBud announced it would issue 3,040,000 common shares at five cents per share, totaling $152,000, to cancel the agreement.
The company’s CFO instructed Gold and the other shareholders of 2688453 Ltd. to transfer ownership to a third party for a total consideration of $5. Gold did not inform Gravitas of his involvement in these transactions.
Gold participated in off-market transactions involving Zenith Exploration Inc. (Zenith) in October 2020. Gold, Carrigan, and another investor acquired a controlling interest in Zenith, and one of Carrigan’s clients became its CEO and director. Gold did not disclose his involvement to Gravitas.
On October 27, 2020, Gold and the other investors sold all their shares in Zenith in another off-market transaction. He did not inform Gravitas of the sale.
CIRO found that Gold engaged in unapproved OBAs while registered with Gravitas. Under the settlement terms, he must pay $20,000 in fines and $5,000 in costs within 30 days of the hearing panel’s acceptance.
At all relevant times, Gold conducted business with Dominick Capital Corporation in Toronto. He is not currently registered in the securities industry.
