CALGARY, July 25, 2013 /CNW/ - The Alberta Securities Commission (ASC)
has found that Richard Schmidt and Goldenrod Resources Inc. illegally
traded and distributed Goldenrod securities, and that Schmidt
perpetrated a fraud on investors and made false and misleading
statements to investors. All that misconduct was found to be contrary
to the public interest.
In its decision, an ASC panel ordered that:
Schmidt must pay an administrative penalty of $200,000, disgorge
$700,000, and pay costs of $5,000. Schmidt is also permanently banned
from trading in or purchasing securities, the use of Alberta securities
laws exemptions, and acting as a director or officer of any issuer; and
all trading in or purchasing of Goldenrod securities will cease until
such time, if ever, that the ASC Executive Director issues a final
receipt for a prospectus filed by Goldenrod.
The ASC panel emphasized the serious nature of the named parties'
misconduct, including the illegal trades and distributions. The ASC
panel further stated: "Even more egregious were Schmidt's false and
misleading statements and his fraudulent course of conduct. He lied to
at least some Goldenrod investors, reassuring them with false
statements regarding Goldenrod's activity and level of success." From
2006 to 2010, Schmidt raised approximately $5 million from investors.
The ASC panel found "that $700 000 of the approximately $5 million
raised was not used for Goldenrod's operations but was diverted by
Schmidt to himself for his personal use."
A copy of the decision 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
SOURCE: Alberta Securities Commission
For further information:
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