VANCOUVER, March 12, 2020 /CNW/ - The British Columbia Securities Commission (BCSC) has reached a settlement agreement with an Abbotsford man and his former B.C. company for market manipulation.
Robert Logan Dunn, the president and director of Mosaic Holdings Inc., admitted that in 2012 he paid a stock promoter $72,161 USD to promote Forum National Investments Ltd.
The promoter published materials that contained grossly promotional statements about Forum, a B.C. company with shares that traded on the Over-the-Counter Bulletin Board market in the U.S.
Dunn and Mosaic admitted that this promotional material resulted in, or contributed to, an artificial price in Forum's shares. At the time, Dunn was also trading Forum's shares for himself.
While Dunn and Mosaic's conduct in paying the promoter was an inadvertent and unintentional breach of the Securities Act, they admitted that they should have known it would result in or contribute to a misleading appearance of trading activity or artificial price for Forum's shares.
As part of the settlement, Dunn has agreed to pay $35,000 to the BCSC.
He is also prohibited for five years from:
- trading in or purchasing securities or exchange contracts (with some limited exceptions)
- becoming or acting as a director or officer of any reporting issuer or registrant
- becoming or acting as a registrant or promoter
- acting in a management or consultative capacity in connection with activities in the securities market
- and engaging in investor relations activities
Dunn was sanctioned by the United States Securities and Exchange Commission (SEC) in relation to the same set of circumstances. Dunn settled with the SEC, agreeing to a $20,000 USD disgorgement order and to a permanent ban on trading, issuing, inducing or attempting to induce the purchase or sale of any penny stocks.
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: Elise Palmer, 604-899-6830; Public inquiries: 604-899-6854 or 1-800-373-6393 (toll free), [email protected]