The British Columbia Securities Commission (BCSC) has issued a notice of hearing, alleging that B.C. resident Myron Sullivan II committed fraud by knowingly making materially false statements to entice investors to invest in a company that he controlled.
The notice alleges that Sullivan made these false statements while promoting Global Response Group Corp. (GRG), a B.C.-based company that Sullivan claimed possessed oil spill cleanup and fire-fighting technology. Sullivan is the president and CEO of GRG.
The notice alleges that Sullivan used International Marketing of Canada Corp. (IMC), another B.C.-based company, to receive money from people who invested in GRG. Sullivan is a director and officer of IMC.
Between 2008 and 2011, Sullivan raised approximately $1.74 million from 97 investors by selling GRG shares from his personal holdings, which he acquired directly from GRG.
The BCSC contends that these shares were sold illegally, as Sullivan did not file a prospectus in respect of any of his distributions, and no exemptions from prospectus requirements were applicable.
The BCSC further alleges that Sullivan repeatedly made false statements to investors in order to entice them to invest in GRG. He told them that GRG would soon go public and be traded at a specified price, and that the company had sold its technology to the Chinese National Petroleum Co., none of which was true, says the BCSC.
In addition, the BCSC contends that Sullivan told two investors he would use their money to develop GRG’s business. Instead, the BCSC alleges, he spent part of their funds on personal items. He also promised two investors that he would provide them with GRG share certificates but failed to do so, the BCSC claims.
None of the allegations have been proven.
@GlenKorstrom
