VANCOUVER, June 6, 2017 /CNW/ - A British Columbia Securities Commission (BCSC) panel has found that David Tuan Seng Lim and Michael Mugford engaged in market manipulation.
Lim, a Vancouver resident, was an investment advisor who was registered under the Securities Act during the relevant period. Mugford is a Lions Bay, B.C. resident, who was a client and business associate of Lim.
The panel found that Lim and Mugford engaged in a market manipulation by creating an artificial share price for a company called Urban Barns from November 2009 to February 2010.
The panel found that the respondents paid or assisted in paying a third party to run a tout sheet publishing campaign to promote the company's shares, which resulted in the artificial price. The panel described the tout sheets as "grossly promotional" and "designed to trick the reader into believing that the Urban Barns shares were worth far more than they really were."
In the same decision, the panel dismissed market manipulation allegations against Swiss wealth management firm EuroHelvetia TrustCo S.A. (now known as EHT Corporate Services S.A.), stating that there was not sufficient evidence to find that EuroHelvetia's conduct contributed to the manipulation.
The panel directed the parties to make submissions on sanctions according to the schedule set out in the findings.
You may view the findings decision on our website, www.bcsc.bc.ca, by typing David Tuan Seng Lim, Michael Mugford, EuroHelvetia TrustCo S.A. or 2017 BCSECCOM 196 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' (CSA) Disciplined List for information relating to persons and companies 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: Alison Walker, 604-899-6713; Public inquiries: 604-899-6854 or 1-800-373-6393 (toll free), [email protected]