ALBERTA SECURITIES COMMISSION DECISION Citation: Re Global 8 Environmental Technologies, Inc., 2015 ABASC 734 Date: 20150605 Global 8 Environmental Technologies, Inc., Halo Property Services Inc., Canadian Alternative Resources Inc., Milverton Capital Corporation, Rene Joseph Branconnier and Chad Delbert Burback Panel: Kenneth Potter, QC Fred Snell, FCA Appearing: Robert Stack, Liam Oddie and Heather Currie for Commission Staff H. Roderick Anderson for René Joseph Branconnier Patricia Taylor for Chad Delbert Burback Daniel Wolf for Global 8 Environmental Technologies, Inc. Submissions Completed: 26 November 2014 Decision: 5 June 2015 5176439.1 TABLE OF CONTENTS I. OVERVIEW ....................................................................................................................... 1 A. Introduction ............................................................................................................. 1 1. G8 .................................................................................................................1 2. Halo and CAR ..............................................................................................2 B. History of the Proceedings ...................................................................................... 2 C. Certain Prior Orders ................................................................................................ 3 D. Summary of Conclusion ......................................................................................... 3 II. PROCEDURAL AND EVIDENTIARY MATTERS ........................................................ 4 A. Standard of Proof .................................................................................................... 4 B. Hearsay Evidence.................................................................................................... 4 C. Credibility and Conflicting Evidence ..................................................................... 4 III. THE RESPONDENTS........................................................................................................ 5 A. G8 ............................................................................................................................ 5 B. Halo ......................................................................................................................... 6 C. CAR ........................................................................................................................ 7 D. Milverton................................................................................................................. 7 E. Branconnier ............................................................................................................. 8 F. Burback ................................................................................................................. 10 IV. OTHER INDIVIDUALS AND ENTITIES ...................................................................... 12 A. Dennis Branconnier .............................................................................................. 12 B. Michael Brown and HDR ..................................................................................... 12 C. Church ................................................................................................................... 13 D. Dyer....................................................................................................................... 14 E. Ferreira .................................................................................................................. 14 F. Gardner ................................................................................................................. 18 G. Glow Marketing .................................................................................................... 20 H. Hansen................................................................................................................... 20 I. Kroeker ................................................................................................................. 21 J. Tina Morin ............................................................................................................ 21 K. Thibault ................................................................................................................. 22 L. Cameron Willier.................................................................................................... 24 M. Wolf ...................................................................................................................... 24 V. G8 ...................................................................................................................................... 26 A. General .................................................................................................................. 26 1. Directors and Officers ................................................................................26 2. G8 Board Meetings and Directors' Resolutions .........................................28 3. G8 Banking ................................................................................................28 4. History and Administration of G8's Business ............................................28 B. Business Model of G8 ........................................................................................... 29 C. Fundraising for G8 ................................................................................................ 29 1. Amount Raised...........................................................................................29 2. G8 Fundraising Process .............................................................................30 3. G8 Fundraising Documentation .................................................................30 D. G8 Marketing Material ......................................................................................... 32 1. General .......................................................................................................32 ii 2. G8 Website.................................................................................................32 3. G8 Video ....................................................................................................33 4. Printed Marketing Material ........................................................................34 5. Other Marketing Communications ............................................................34 6. Branconnier's Role in G8 Marketing Material ...........................................35 E. Status of G8's Business ......................................................................................... 36 1. Revenue and Projects .................................................................................36 (a) General ...........................................................................................36 (b) Evidence Relating to Projects ........................................................36 (c) Conclusion on Existence of Projects and Business........................37 2. Financial Difficulties .................................................................................38 F. G8's Arrangements with Milverton and Others .................................................... 38 1. Agreements with and Payments to Milverton ............................................38 2. Payments by G8 to Others .........................................................................40 3. Transfers to Milverton from the G8 Bank Account ...................................40 VI. HALO AND CAR............................................................................................................. 41 A. General .................................................................................................................. 41 1. Origin of Halo/CAR Operation ..................................................................41 2. Directors and Officers of Halo and CAR ...................................................42 3. ZEEOT Agreement ....................................................................................42 4. ZEEOT Technology ...................................................................................42 B. The Halo/Milverton Agreement ............................................................................ 43 C. Fundraising for Halo/CAR .................................................................................... 44 1. Amount Raised...........................................................................................44 2. Halo/CAR Fundraising Process .................................................................44 3. Halo/CAR Fundraising Documentation .....................................................45 D. Halo/CAR Marketing Material ............................................................................. 46 E. Status of Halo's and CAR's Business .................................................................... 47 F. Financial Information............................................................................................ 48 VII. INVESTOR EVIDENCE: G8 .......................................................................................... 49 A. Investors ................................................................................................................ 49 B. Initial Contact and Investments ............................................................................ 49 1. GR ..............................................................................................................49