BCSC Panel Sanctions OTC Bulletin Board Company and Two Directors
VANCOUVER, BRITISH COLUMBIA, Dec 4, 2012 (Menafn - Marketwire via COMTEX) --A British Columbia Securities Commission panel has sanctioned a company quoted on the U.S. Over-the-Counter Bulletin Board and two of its directors for contravening securities laws.
In July 2012, a commission panel found that Brookmount Explorations Inc, Peter John Flueck and Zafer Erick Sungur made misrepresentations in news releases issued between February 2005 and June 2007. In doing so, the company also contravened National Instrument 43-101, the national standard for mining disclosure.
The news releases falsely stated the value of Brookmount's principal mining property by claiming that it had mineral reserves when in fact it had none, contrary to both geological reports Brookmount had received, and what Brookmount had reported in its filings with the U.S. Securities and Exchange Commission.
Additionally, the panel found that Flueck and Sungur breached a BCSC cease trade order when they sold Brookmount securities in July and August of 2007.
In its sanctions decision, the panel stated that Flueck and Sungur "are not people who belong in the public markets until they have had an opportunity to reflect on their misconduct and to educate themselves on the responsibilities of directors and officers of public companies."
For his misconduct, Sungur is banned from trading or purchasing securities of any issuer with whom he is in a special relationship, and from acting as a director or officer of any issuer. He is also prohibited from becoming or acting as a promoter, from engaging in investor relations activities, and from acting in a management or consultative capacity in connection with the securities market.
The panel ordered Sungur to pay a 45,000 fine. All prohibitions will remain in place until the later of five years or such time as the fine is paid. Additionally, Sungur's ban on becoming or acting as a director or officer will remain in place until the later of five years, the date he successfully completes the Simon Fraser University course Public Companies; Financing, Governance and Compliance, or such time as the fine is paid.
Flueck is banned from trading or purchasing securities of any issuer with whom he is a person in a special relationship, and from acting as a director or officer of any issuer (except that he may act as a director an officer of Brookmount until May 29, 2013 for the sole purpose of selling or winding up the company). He is also prohibited from becoming or acting as a promoter, from engaging in investor relations activities, and from acting in a management or consultative capacity in connection with the securities market.
Flueck was ordered to pay a 65,000 fine. All prohibitions will remain in place until the later of eight years or such time as the fine is paid. Additionally, Flueck's ban on becoming or acting as a director or officer will remain in place until the later of eight years, the date he successfully completes the Simon Fraser University course Public Companies; Financing, Governance and Compliance, or such time as the fine is paid.
The panel also made a permanent cease trade order relating to Brookmount, replacing the cease trade order from June 2007.
The B.C. Securities Commission is the independent provincial government agency responsible for regulating trading in securities within the province. You may view the decision on our website, www.bcsc.bc.ca, by typing Flueck, Sungur, Brookmount Explorations Inc. or 2012 BCSECCOM 445 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).
If you have questions, contact Richard Gilhooley, media relations, 604-899-6713. For public inquiries, call 604 899 6854 or 1 800 373 6393 (toll free).
Learn how to protect yourself and become a more informed investor at www.investright.org.
FOR FURTHER INFORMATION PLEASE CONTACT: British Columbia Securities Commission Richard Gilhooley Media Relations 604-899-6713 or (Canada) 1-800-373-6393 www.bcsc.bc.ca
SOURCE: British Columbia Securities Commission
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