BCSC panel finds that two men facilitated the secret promotion of securities
VANCOUVER, July 15, 2014 /CNW/ - A British Columbia Securities Commission panel has found that a tout sheet publisher made misrepresentations and other misleading statements when promoting three companies traded on the Over-the-Counter-Bulletin-Board (OTCBB) in the United States. The panel also found that the managing director of a Swiss company facilitated secret payments to the tout sheet publisher in connection with one of the promotions
The panel found that between October 2009 and July 2010, Colin Robert Hugh McCabe, of Abbotsford, B.C., featured three OTCBB-listed companies in his Elite Stock Report tout sheet. The panel said that McCabe "wrote and published grossly misleading reports while acting on retainder from third parties without knowing, or even inquiring, as to the parties' interest in the promotion, or its purpose." The panel also found that McCabe "facilitated clandestine payment arrangements."
The panel found that McCabe engaged in egregious conduct contrary to the public interest. The panel said, "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."
McCabe was asked to promote one of the companies by Erwin Thomas Speckert, the managing director of a Swiss company called Everest Asset Management. The panel found that Speckert acted as an intermediary for unknown persons and arranged secret payments to McCabe.
The panel found that Speckert engaged in conduct contrary to the public interest. Speckert "had to have known that the purpose of these arrangements was to conceal the relationship between the unknown persons and McCabe," the panel said. "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 directed the parties to make submissions on sanctions according to the schedule set out in the findings.
You may view the findings decision on our website www.bcsc.bc.ca by typing Colin Robert Hugh McCabe, Erwin Thomas Speckert, or 2014 BCSECCOM 269 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