Law

Mining directors fined, banned from securities trading


Wed Dec 5, 2012 10:00am PST

Two directors for a mining company claiming reserves the BC Securities Commission says it didn’t have are to be fined and banned from trading in securities.

The penalties resulted from claims made on behalf of Brookmount Explorations Inc., a company that was being traded on the Over the Counter Bulletin Board.

A BCSC disciplinary panel found company directors Peter John Flueck and Zafer Erick Sungur made “misrepresentations” in news releases in February 2005 and June 2007.

“The news releases falsely stated the value of Brookmount's principal mining property by claiming that it had mineral reserves when in fact it had none, contrary to both geological reports Brookmount had received, and what Brookmount had reported in its filings with the U.S. Securities and Exchange Commission,” the BCSC said in a news release.

The statements constituted a breach of national standards for mining disclosure, the BCSC said.

Sungur received a $45,000 fine and has been banned from trading in the securities of any issuer with whom he is in a special relationship, and from acting as a director or officer of any issuer.

He is also not to promote or engage in investor relations activities, or provide management or consultation services in connection with any securities.

Flueck was ordered to pay a $65,000 fine and received a similar ban on securities trading. The one exception is that he can act as a director of Brookmount until May 29, 2013, but only in order to sell or wind down the company.

A BCSC panel has issued a cease-trade order relating to Brookmount.

nebbett@biv.com

@nbennett_biv

Tags: securities, U.S. Securities and Exchange Commission, mining



Things You Might Like »

Articles

Columns

Lists & Data


Comments »


NOTE: In order to comment, you must be a registered BIV.com user and be logged into your user account. If you do not have a BIV.com account, you may register here. If you have one of the following accounts: Google, Facebook, Twitter, Yahoo, OpenID, you are also able to comment, just click "Post as" button and then log into one of these services via Disqus.

blog comments powered by Disqus

Featured Video


Popular News



Upcoming Events