B.C. man fined $700,000 for fraud
A B.C. man has been fined $700,000 and permanently banned from the province's capital markets for knowingly making false statements to potential investors in a company he controlled, the British Columbia Securities Commission announced yesterday.
Myron Sullivan II (aka Fred Myron George Sullivan) is the director, president and chief executive officer of Global Response Group Corp., a company Sullivan claimed was in possession of oil spill clean-up and fire-fighting technology.
Sullivan raised approximately $1.74 million from 97 investors by selling shares in GRG from his personal holdings. The BCSC panel found these shares were distributed illegally because Sullivan did not file a prospectus.
The hearing also found that Sullivan made several misrepresentations in connection with the sale of shares, including false claims that:
- GRG would soon go public;
- GRG shares would be traded at a specified price; and
- the company had sold its technology to the Chinese National Petroleum Company.
Sullivan, GRG and International Marketing of Canada Corp., a B.C.-based company that GRG used to market the securities, of which Sullivan is a director and officer, have been permanently banned from trading in securities, purchasing securities or exchange contracts and from becoming or acting as a director or officer of any issuer or registrant.
Sullivan has been ordered to pay an administrative penalty of $700,000.