VANCOUVER, June 11, 2014 /CNW/ - A British Columbia Securities Commission panel has found that a B.C. resident and former director of a B.C. mining company breached securities laws regarding prospectus requirements.
The panel found that Daniel Grant McGee authorized, permitted or acquiesced in illegal distributions when he was a director of Cinnabar Explorations Ltd.
In a notice of hearing issued August 20, 2012, the Executive Director alleged that Cinnabar, McGee, Christopher James Bass, and Dale Zucchet breached securities laws regarding prospectus requirements. McGee sought and obtained an adjournment of the hearing of the allegation against him.
In September 2013, a commission panel found that Bass and Zucchet illegally sold shares of Cinnabar to seven investors between April and July of 2011. The company claimed that the seven investors fell under the family, friends and business associates and accredited investor exemptions in the securities rules. The panel found they did not.
The panel found that McGee signed the exempt distribution reports relating to the Cinnabar when no prospectus exemption was available, thereby authorizing the illegal distribution. Regarding McGee's testimony that he did not know that he or Cinnabar should have determined whether the claimed exemptions were available, the panel noted that, "ignorance of his obligations does not relieve McGee of liability."
The panel directed the parties to make submissions on sanctions according to the schedule set out in the findings.
You may view the sanctions decision on our website (www.bcsc.bc.ca) by typing Cinnabar Explorations Inc., Daniel Grant McGee, or 2014 BCSECCOM 207 in the search box. Information regarding disciplinary proceedings can be found in the Enforcement section of the BCSC website.
Please visit the Canadian Securities Administrators' Disciplined Persons List for information relating to persons disciplined by provincial securities regulators, the Investment Industry Regulatory Organization of Canada (IIROC) and the Mutual Fund Dealers Association (MFDA).
About the British Columbia Securities Commission (www.bcsc.bc.ca)
The British Columbia Securities Commission is the independent provincial government agency responsible for regulating capital markets in British Columbia through the administration of the Securities Act. Our mission is to protect and promote the public interest by fostering:
- A securities market that is fair and warrants public confidence
- A dynamic and competitive securities industry that provides investment opportunities and access to capital
Learn how to protect yourself and become a more informed investor at www.investright.org
SOURCE British Columbia Securities Commission