VANCOUVER, Jan. 21 /CNW/ - A British Columbia Securities Commission panel
has banned an accountant from trading securities for 15 years and fined him
$70,000 for violating various securities laws when he distributed millions of
dollars in debentures to Canadian investors.
On Nov. 5, 2008, a commission panel found that Henry Jung, a chartered
accountant, failed to file insider trading reports for hundreds of trades
totaling about 5.7 million shares of Bright Star Ventures Ltd., an issuer
formerly listed on the TSX Venture Exchange. The panel also found that Jung
illegally traded in and distributed just under $3 million of debentures to 130
investors in seven Canadian provinces.
Although Jung contended that he was merely Bright Star's office manager,
the panel found he was a de facto director and officer, as he made most of the
management and operational decisions related to Bright Star, and did
everything significant in connection with the issuer's financing.
"In his submissions, Jung minimizes his role in the debenture
distribution, saying that all he did was sign them," the panel said. "He
apparently sees no link between his role in directing the debenture financing
and the losses suffered by investors. For these reasons, Jung is not, in our
opinion, currently fit to participate in public markets and were he to
continue to do so, he would present a risk to investors."
In addition to the $70,000 administrative penalty, the panel ordered that
Jung be prohibited, with limited exceptions, for 15 years from trading
securities and from becoming or acting as a director or officer of any issuer,
registrant or investment fund manager. The panel also banned Jung for 15 years
from becoming or acting as a registrant, investment fund manager or promoter,
engaging in investor relations activities, and acting in a management or
consultative capacity in connection with the securities market.
The B.C. Securities Commission is the independent provincial government
agency responsible for regulating trading in securities within the province.
You may view the decision on our website www.bcsc.bc.ca by typing in the
search box, Henry Jung or 2009 BCSECCOM 22. If you have questions, contact Ken
Gracey, media relations, 604-899-6577.
Learn how to avoid investment fraud at the BCSC's investor education
For further information:
For further information: Ken Gracey, (604) 899-6577 or (Canada)