Two men were involved in the promotion of securities for three companies using misrepresentations and misleading statements, found the British Columbia Securities Commission (BCSC).
The companies, which are all traded on the Over-the-Counter-Bulletin-Board (OTCBB), were Guiness Exploration Inc., Tuffnell Exploration Ltd. and Gunpowder Gold Corp.
Between October 2009 and July 2010, the BCSC found, Colin Robert Huge McCabe of Abbotsford, B.C., “wrote and published grossly misleading reports while acting on retainer from third parties without knowing, or even inquiring, as to the parties’ interest in the promotion, or its purpose.”
He also facilitated payment arrangements in secret.
The panel wrote in its findings, “In our opinion those who ultimately profited through these promotions, or hoped to do so, could have done so only by improper market conduct, which would reasonably call into question the confidence that should be placed on our capital markets if this sort of conduct were tolerated.”
The panel also found that Erwin Thomas Speckert, the managing director of Swiss company Everest Asset Management, acted as an intermediary for unknown personas and arranged the secret payments to McCabe.
“Speckert’s facilitation of secret payments to McCabe made him an active participant in the process and was an essential part of the promotion,” the panel said.
Submissions on sanctions will be set out by the panel by July 19.
@EmmaHampelBIV
