This press release replaces the January 19, 2015 press release that contained incorrect information regarding Robert James Maddigan's status as an engineer. The BCSC has removed the previous release from its website, and requests that any outlet that published incorrect information based on the previous release retract and correct that information.
The amended press release appears below.
VANCOUVER, Jan. 23, 2015 /CNW/ - The Executive Director of the British Columbia Securities Commission has issued a notice of hearing alleging that an Alberta man and a numbered company that he controls defrauded two investors.
The notice alleges that Robert James Maddigan, an Alberta resident, committed fraud by failing to deliver shares or return the money of two investors who had purchased shares in a coal company from his numbered company. Maddigan was licensed as an engineer in Alberta until January 2010 and in the Northwest Territories/Nunavut until the end of 2012. He has served as a director, officer, or consultant to public junior mining companies.
Maddigan is the sole director and officer of 0902395 B.C. Ltd. The company was a consultant to a coal company for the acquisition of a coal mine in Mongolia. In return, the coal company agreed to issue some of its shares to 0902395.
BCSC staff contends that in 2011, 0902395 sold the shares before it had received them from the coal company. It entered into agreements with 34 investors, under which the investors provided total proceeds of $880,000 to 0902395.
In 2012, 0902395 received nine million shares from the coal company and, in 2013, transferred the shares to some of the investors. However, staff alleges that certain investors, including a business associate and a friend of Maddigan, received more shares than they had paid for, while others received none.
Two investors Maddigan did not know – who paid $30,000 and US$12,500 for a total of 425,000 shares – received nothing. Maddigan, through his lawyer, told BCSC staff that he would repay these two investors in cash. He has not done so.
These allegations have not been proven. Counsel for the Executive Director will apply to set dates for a hearing into the allegations before a panel of commissioners on February 3, 2015 at 9:00am.
You may view the notice of hearing on our website, www.bcsc.bc.ca, by typing Robert James Maddigan, 0902395 B.C Ltd., or 2015 BCSECCOM 31 in the search box. Information about 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 of Canada (MFDA).
About the British Columbia Securities Commission (www.bcsc.bc.ca)
The British Columbia 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
For further information: Media Contact: Richard Gilhooley, Media Relations, 604-899-6713; Public inquiries: 604-899-6854 or 1-800-373-6393 (toll free)