B.C. Court of Appeal upholds BCSC sanctions against mining company and CEO
VANCOUVER, BC, Dec. 12, 2022 /CNW/ - The province's highest court has dismissed a former CEO's appeal of a $150,000 penalty and lifetime market ban by the B.C. Securities Commission (BCSC).
The three-judge appeals court decision effectively means that Brent Hugo Johnson must pay the penalty and obey the ban imposed by a BCSC panel in 2018. The sanctions followed a BCSC finding that he and his company, Mountainstar Gold Inc., made repeated false or misleading statements in public filings about certain Chilean mining claims between 2012 and 2015.
The BCSC panel found that Johnson, as a director, CEO and president, failed to ensure the accuracy of the company's disclosure, and concluded it was unlikely that investors would have invested in Mountainstar if the company had accurately disclosed the facts surrounding the mining claim and related legal proceedings.
In addition to the $150,000 penalty, the panel ordered Johnson to resign from any position as a director or officer of an issuer or registrant. It also permanently prohibited him from:
- trading in or purchasing securities or exchange contracts
- relying on any exemptions of the Securities Act
- becoming or acting as a registrant or promoter
- acting in a management or consultative capacity in the securities market
- engaging in investor relations activities
The B.C. Court of Appeal found that the BCSC panel provided a fair hearing and made no error when it imposed the sanctions.
"I detect no impropriety or unfairness in the panel's approach," the decision said.
"The panel and the Executive Director met their duty to ensure a fair hearing by offering an appropriate level of assistance to Mountainstar and Mr. Johnson."
The B.C. Securities Commission is the independent provincial government agency responsible for regulating capital markets in British Columbia through the administration of the Securities Act. Our mission is to protect and promote the public interest by fostering:
- A securities market that is fair and warrants public confidence
- A dynamic and competitive securities industry that provides investment opportunities and access to capital
Learn how to protect yourself and become a more informed investor at www.investright.org
SOURCE British Columbia Securities Commission
Media Contact: Andrea Ross, 604-899-6976; Public inquiries: 604-899-6854 or 1-800-373-6393 (toll free), [email protected]
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