Securities Laws Settlement

The Nova Scotia Securities Commission has settled a case with Steven Jules Rethy who admitted to violating Nova Scotia securities laws and failing to deal fairly, honestly and in good faith with a client.

Mr. Rethy has been registered with Keybase Financial Group Inc. since January, 2004. He admitted to instructing a client to sign blank forms, which he kept on file. On or about Sept. 7, 2009, Mr. Rethy signed his client's signature to a letter of direction form for Clarington Funds.

Mr. Rethy acknowledged that his actions undermined investor confidence in the fairness and efficiency of capital markets in Nova Scotia and were contrary to the public interest.

Under the order and settlement agreement, Mr. Rethy will pay an administrative penalty of $22,000 to the commission. He will also pay $500 in costs connected with the investigation and conduct of the proceedings.

Keybase Financial Group Inc. has attached terms and conditions to Mr. Rethy's registration to assist with supervision and monitoring.

The Nova Scotia Securities Commission is the provincial government agency responsible for regulating trading in securities in the province. To view the order and settlement agreement, visit the website at www.gov.ns.ca/nssc/compliancenforce/enforproceedings.asp .