Genesis executives admit to misinforming their audit committee and auditors

CALGARY, Sept. 1, 2011 /CNW/ - The Alberta Securities Commission (ASC) has concluded a settlement agreement with Genesis Land Development Corp.'s Chief Executive Officer Gobinder (Gobi) Singh and former Chief Financial Officer Frank Devcich for breaching Alberta securities laws by authorizing, permitting or acquiescing in Genesis Land Development's failure to provide prescribed disclosure in accordance with Canadian Generally Accepted Accounting Principles.  In the settlement agreement, Singh and Devcich each agreed to pay the ASC $100,000 and $30,000 towards investigation and legal costs. They also agreed to cease acting as directors and officers of any issuer for a period of seven years.

In the settlement agreement, Singh and Devcich admit they acted contrary to the public interest by failing to provide all of the material facts to their audit committee and the auditors about the $4.5 million sale of lands to GenCap Equity Inc., a company owned and controlled by Thomas Tang, the former executive director of Genesis Land Development's equity investment division. Singh and Devcich misinformed their audit committee and the auditors about the non-arm's length nature of the transaction they had personally facilitated. Tang reached a settlement agreement with the ASC regarding this case in July 2011.

In December 2008, the audit committee learned the material details of the transaction and decided that the financial statements required restatement. On February 4, 2009, Genesis Land Development filed restated financial statements for the third quarter of 2008, which corrected the accounting of those matters.

A copy of the Settlement Agreement is available on the ASC website at www.albertasecurities.com.

The ASC is the regulatory agency responsible for administering the province's securities laws. It is entrusted to foster a fair and efficient capital market in Alberta and to protect investors.  As a member of the Canadian Securities Administrators, the ASC works to improve, coordinate and harmonize the regulation of Canada's capital markets.

SOURCE Alberta Securities Commission

For further information:

For Media Inquiries:      Mark Dickey
      Senior Communications Advisor
      403.297.4481
       
For Investor Inquiries:      ASC Public Inquiries
      Toll Free 1.877.355.4488

 


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