VANCOUVER, June 26, 2013 /CNW/ - In a settlement agreement with the
British Columbia Securities Commission, Kevin Penstock has admitted
that he repeatedly breached cease trade orders (CTO) issued by the
executive director against his company, iTokk Inc. Penstock is a
Vancouver resident and is the president, chief executive officer, chief
financial officer, secretary, treasurer, director and majority
shareholder of iTokk.
The agreement states that on June 11, 2010, the executive director
cease-traded the securities of iTokk, an OTC reporting issuer with its
head office in Vancouver, for failure to file documents. In spite of
this, iTokk and Penstock issued 134,398 shares of iTokk by entering
into subscription agreements between June 11 and June 25, 2010, raising
approximately $336,000. iTokk and Penstock acknowledged that this
action constituted a breach of the CTO. The CTO was revoked in
September 2010 after iTokk filed the required documents.
However, in October 2010, the executive director again cease-traded the
securities of iTokk for failure to file documents. Between January 13
and March 28, 2011, iTokk and Penstock issued 19,609 shares of iTokk by
entering into subscription agreements, raising approximately $50,000.
iTokk and Penstock have acknowledged that this action constituted a
breach of the CTO issued in October 2010. The company remains
For his misconduct, Penstock has agreed to pay $55,000 to the BCSC, and
to take the officers and directors course within one year of the date
of the agreement and provide proof of the completion of the course to
the executive director. Additionally, Penstock must provide proof
satisfactory to the BCSC that he has engaged current members in good
standing of the Institute of Chartered Accountants of British Columbia
and the Law Society of British Columbia as advisors to iTokk, and that
he has disclosed any order made against him or iTokk to those advisors.
Penstock is also prohibited from becoming or acting as a director or
officer of any issuer or registrant for a period of five years, except
The agreement notes that Penstock cooperated with BCSC staff's
The B.C. Securities Commission is the independent provincial government
agency responsible for regulating trading in securities within the
province. You may view the settlement agreement on our website www.bcsc.bc.ca by typing Kevin Penstock, iTokk Inc. or 2013 BCSECCOM 87 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).