VANCOUVER, April 5, 2012 /CNW/ - The executive director of the British Columbia Securities Commission has issued a notice of hearing alleging that a B.C. man committed fraud by knowingly making materially false statements to entice investors to invest in a company he controlled.
The notice alleges that Myron Sullivan II (aka Fred Myron George Sullivan) knowingly made false statements while promoting Global Response Group Corp. (GRG), a B.C.-based company that Sullivan claimed possessed oil spill clean-up and fire fighting technology. Sullivan is the director, President and Chief Executive Officer of GRG.
The notice also alleges that Sullivan used International Marketing of Canada Corp. (IMC), another B.C.-based company, to receive money from persons who invested in GRG. Sullivan is a director and officer of IMC.
Between 2008 and 2011, Sullivan raised approximately $1.74 million from 97 investors by selling GRG shares from his personal holdings, which he acquired directly from GRG. BCSC staff contends that these shares were sold illegally, as Sullivan did not file a prospectus in respect of any of his distributions, and no exemptions from prospectus requirements were applicable.
BCSC staff further allege that Sullivan repeatedly made false statements to investors in order to entice them to invest in GRG. He told them that GRG would soon go public and be traded at a specified price, and that the company had sold its technology to the Chinese National Petroleum Company. None of this was true.
In addition, BCSC staff maintain that Sullivan also told two investors he would use their money to develop GRG's business, but spent part of their funds on personal items. He also promised two investors that he would provide them with GRG share certificates, but failed to provide them.
These allegations have not been proven. Counsel for the executive director will apply to set dates for the hearing on April 17, 2012 at 9:00 am.
The B.C. Securities Commission is the independent provincial government agency responsible for regulating trading in securities within the province. You may view the notice of hearing on our website www.bcsc.bc.ca by typing Sullivan, Global Response Group Corp, International Marketing of Canada or 2012 BCSECCOM 101 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
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