TORONTO, May 26, 2011 /CNW/ - In a decision released today, an Ontario
Securities Commission (OSC) panel issued its reasons supporting
findings of breaches of sections 25, 53, 126.1 and 126.2(1) of the Securities Act (Ontario) against Sulja Bros. Building Supplies, Ltd. (Sulja Nevada),
Kore International Management Inc. (Kore Canada) and Andrew DeVries
(DeVries) for their involvement in what Staff alleged was a "pump and
dump" scheme involving Sulja Nevada securities. The scheme resulted in
a profit of approximately US $5.6 million by these and other
In its decision, the OSC panel found that, between February 6, 2006 and
January 31, 2007, press releases about the prospects of Sulja Nevada
were widely disseminated to the market, which contained "gross
exaggerations" or were "just plain false." These included false claims
that the company had entered into cement deals that would generate
hundreds of millions of dollars of revenue for Sulja Nevada.
Additionally the OSC panel found that, while these press releases were
being issued, approximately half a billion shares were being illegally
drawn from the treasury of Sulja Nevada and issued to numerous nominee
accounts throughout North America. These nominees would, in turn, sell
the shares into the market at prices inflated by the misrepresentations
in the press releases, resulting in millions of dollars of trading
In connection with the above scheme, the OSC panel found DeVries to have
engaged in fraud, unregistered trading and an illegal distribution,
contrary to the Securities Act. Kore Canada was found to have engaged in market manipulation and
Sulja Nevada was found to have issued misleading and untrue press
releases throughout the material period, contrary to the Securities Act.
The OSC panel had earlier rendered decisions against Petar Vucicevich,
Pranab Shah, Tracey Banumas, Steven Sulja and Sam Sulja for breaches of
the Securities Act in connection with their involvement in the scheme. These Respondents
did not contest the allegations of Staff.
A sanctions hearing in this matter was held on November 30, 2010 with a
decision on sanctions pending.
A copy of the Reasons and Decisions of the OSC panel in respect of Sulja
Nevada, Kore Canada and DeVries; Vucicevich, Shah and Banumas; and
Steven and Sam Sulja 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
For further information:
| For Media Inquiries: || Wendy Dey |
Director, Communications & Public Affairs
| || Carolyn Shaw-Rimmington Manager, |
| || Dylan Rae |
Media Relations Specialist
| For Investor Inquiries: || OSC Contact Centre |
1-877-785-1555 (Toll Free)