VANCOUVER, July 20, 2012 /CNW/ - The executive director of the British
Columbia Securities Commission has issued a temporary order and notice
of hearing against three men and a B.C.-based company over concerns
about unusual trading volume and share price increases.
The temporary order bars all trading or transferring of the shares of
Forum National Investments Ltd, a B.C. reporting issuer whose shares
trade on the Over-the-Counter Bulletin Board market in the United
States. The executive director initially intervened by issuing a halt
trade order on June 28, 2012.
Daniel Clozza, Martin Tutschek, and Grant Curtis, all of whom are
residents of B.C., are named in the notice of hearing. Clozza is the
President, Chief Executive Officer, and a director of Forum National,
while Tutschek is the Chief Financial Officer and a director of the
company. Curtis is a shareholder.
The notice says that BCSC staff is concerned with the unusual trading
volume and price increase for shares of Forum National that took place
between May and June of 2012. Staff is also concerned with apparent
attempts to violate or circumvent the halt trade order by transferring
or issuing shares of Forum National.
During the relevant period, the market for Forum National shares
experienced a sudden increase in trading volume and price. In fact, the
market capitalization of Forum National increased from just over USD $6
million, to over USD $120 million.
During this sudden increase, Forum National was the subject of an
internet promotional campaign funded by undisclosed persons, and the
company itself issued seven news releases related to the expansion of
its viatical settlement business.
BCSC staff requested that Forum National issue a clarifying news release
explaining what role, if any, the company or any its management had in
the promotional internet campaign. To date, the company has declined to
issue the release.
These allegations have not been proven. Counsel for the executive
director will apply to extend the temporary order on July 31, 2012 at
The B.C. Securities Commission is the independent provincial government
agency responsible for regulating trading in securities within the
province. You may view the notice of hearing on our website www.bcsc.bc.ca by typing Daniel Clozza, Martin Tutschek, Grant Curtis, Forum National
Investments Ltd. or 2012 BCSECCOM 294 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).
Learn how to protect yourself and become a more informed investor at www.investright.org
SOURCE British Columbia Securities Commission
For further information:
For media inquiries, contact Richard Gilhooley, media relations, 604-899-6713. For public inquiries, call 604 899 6854 or 1 800 373 6393 (toll free).