TORONTO, March 28, 2013 /CNW/ - The Ontario Securities Commission
approved a settlement agreement yesterday between Staff and Bernard
Boily (Boily). Boily was a geologist with 30 years of experience and
the Qualified Person for Bear Lake Gold Ltd., a mining exploration
company and a reporting issuer listed on the TSX Venture Exchange.
The matter is the first case to come before the Commission that pertains
to the conduct of a "Qualified Person", a gatekeeper of technical
information under National Instrument 43-101 - Standards of Disclosure for Mineral Projects (NI 43-101).
In the agreed facts, Boily admitted that during the period of December
2007 to July 2009 he:
altered certain assay results received by Bear Lake and transferred
these results into the company's assay database;
prepared draft press releases for Bear Lake that contained incorrect and
inflated data based on the altered results and which was then issued to
the market; and that he
provided Independent Qualified Persons, who were retained to prepare a
technical report for Bear Lake (as required by NI 43-101), with altered
assay results and assay databases that contained results which were
calculated based on these altered results, and he engaged in other
misconduct, including replacing core and modifying a drill core log.
Trading in Bear Lake was halted on July 17, 2009, following which Bear
Lake announced that it had become aware of material inconsistencies in
its exploration results. Boily admitted that upon resumption of
trading on July 28, 2009, Bear Lake suffered a market capitalization
loss, on one day alone, of over $42 million.
In reaching the settlement, Boily admitted that he:
perpetrated a fraud in relation to his conduct with the Independent
breached the prohibition against issuing misleading and untrue
statements to the market;
engaged in conduct which he reasonably ought to have known resulted in,
or contributed to, an artificial price for Bear Lake securities; and
engaged in conduct which was not only contrary to the public interest,
but abusive to the integrity of Ontario's capital markets.
In the settlement, Boily agreed to, among other sanctions, a permanent
ban from acting as a Director and Officer of any issuer, an
administrative penalty of $750,000, $50,000 in costs, and a
prohibition from trading (with a carve-out for his Locked-In
Retirement Account) for the later of a period of 15 years or as long as
his administrative penalty and costs order remain unpaid. Boily also
agreed not to act as a Qualified Person for life.
"The terms of this settlement send a strong message that the Commission
will not tolerate misconduct by Qualified Persons, particularly conduct
which runs contrary to the important gatekeeper role played by
Qualified Persons in the securities disclosure regime," said Tom
Atkinson, Director of Enforcement at the Ontario Securities Commission.
A copy of the Settlement Agreement and Order of the Commission in this
matter are available on the OSC website at www.osc.gov.on.ca.
The mandate of the OSC is to provide protection to investors from
unfair, improper or fraudulent practices and to foster fair and
efficient capital markets and confidence in capital markets. Investors
are urged to check the registration of any person or company offering
an investment opportunity and to review the OSC's investor materials
available at www.osc.gov.on.ca.
SOURCE: Ontario Securities Commission
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