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BCSC Panel Finds That Mining Company and Two B.C. Men Illegally Distributed Securities

Sep 9 2013 12:00AM

Marketwire

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VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 09/09/13 -- A British Columbia Securities Commission panel has found that a B.C. mining company and two B.C. residents engaged in illegal distributions.

The panel found that Cinnabar Explorations Inc., Christopher James G. Bass and Dale Zucchet illegally sold shares to seven investors between April and July of 2011.

Cinnabar, a mining company, has never filed a prospectus in B.C. The company claimed that the seven investors fell under the family, friends and business associates and accredited investors exemptions in the securities rules. The panel found they did not.

Bass was the Chief Executive Officer and a director of Cinnabar. He was a securities broker from 1986 to 1987. In 1988, the BCSC sanctioned him.

The panel also found that Zucchet made misrepresentations about the shares when he was soliciting investors. He talked about Cinnabar going public. This was untrue. He also counselled an investor to buy shares illegally.

The panel directed the parties to make submissions on sanctions according to the schedule set out in the findings. A hearing on sanctions is scheduled for the week of October 7, 2013.

Commission staff also named Daniel Grant McGee in its notice of hearing. That hearing is scheduled for December 4, 2013.

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 Cinnabar Explorations Inc., Daniel Grant McGee, Dale Zucchet or 2013 BCSECCOM 361 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.



Contacts:
British Columbia Securities Commission
Richard Gilhooley
Media Relations
604-899-6713 or (Canada) 1-800-373-6393
www.bcsc.bc.ca





Source: Marketwire


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