An Abbotsford man who opened a wireless and high-speed Internet business to great fanfare in 2007 has been banned from trading for 20 years.

The British Columbia Securities Commission (BCSC) banned WebNet CEO Gregory Clark Carrington who has admitted responsibly for four related companies that made illegal distributions to investors in Canada and the U.S.

Carrington, 64, was CEO and president of WebNet Converged Wireless Networks Ltd., WebNet Broadcasting Corporation, WebNet Global Capital Partners Ltd., and 3dh Capital Ltd.

Required documents detailing information on the securities had numerous deficiencies, stated a BCSC press statement.

It said $8.7 million was raised from 916 investors in various provinces, including B.C., and the U. S.

Carrington is prohibited from trading in securities, and doing so for anyone else. He can't act as a manager or consultant in connection with activities in the market, or engage in investor relations.

The $100,000 fine that would normally be applied in such a case has been waived, as Carrington cannot pay it, stated the BCSC.

Carrington is subject to numerous outstanding debts and judgments.

He's also facing orders under the Social Service Tax Act and the Employment Standards Act and Canada Labour Code around WebNet's unpaid taxes and wages.

Carrington and his partners, directors John Bruder and Narinder Pal Soddy, pitched WebNet Global to local dignitaries at the launch of the Abbotsford store in September 2007.

The company stated among other things that it would create a wireless Internet "hot zone" across the city's downtown core.

However, BCSC issued a cease-trade order to WebNet Global Capital Partners on Jan. 25, 2008, and the other three companies on June 25, 2008.

Those orders still stand.

More than 100 employees of WebNet found themselves out of work in July 2008 after the company's technical office in Aldergrove closed, and it cancelled its high-speed Internet connection and phone services.

At the time, Carrington stated a "big creditor" had failed to pay up and the company was having "cash flow" problems.

The company was going to reposition and reorganize and continue to operate its Abbotsford office and offer products and services.

The cease orders by the BCSC were due to filing deficiencies that were being remedied, said Carrington.

At the end of July 2008, Carrington sent out letters to investors asking them to send $500 or more to WebNet bank accounts to float the company for a further 90 days when, "adequate revenues will kick in, fund [the company] and start the recovery process."

He offered a 15 per cent return on a one-year promissory note.

He also said he would place a second mortgage on his home to meet the company's financial obligations. that it would create a wireless Internet "hot zone" across the city's downtown core.

However, BCSC issued a cease-trade order to WebNet Global Capital Partners on Jan. 25, 2008, and the other three companies on June 25, 2008.

Those orders still stand.

More than 100 employees of WebNet found themselves out of work in July 2008 after the company's technical office in Aldergrove closed, and it cancelled its high-speed Internet connection and phone services.

At the time, Carrington stated a "big creditor" had failed to pay up and the company was having "cash flow" problems.

The company was going to reposition and reorganize, and continue to operate its Abbotsford office and offer products and services.

The cease orders by the BCSC were due to filing deficiencies that were being remedied, said Carrington.

At the end of July 2008, Carrington sent out letters to investors asking them to send $500 or more to WebNet bank accounts to float the company for a further 90 days when, "adequate revenues will kick in, fund [the company] and start the recovery process."

He offered a 15 per cent return on a one-year promissory note.

He also said he would place a second mortgage on his home to meet the company's financial obligations.

RBaker@abbotsfordtimes.com

-with files from The Province