British Columbia Securities Commission

British Columbia Securities Commission

July 20, 2012 19:25 ET

BCSC Executive Director's Bulletin: Securities Regulator Issues Notice of Hearing and Temporary Order Against B.C. Reporting Issuer and Three B.C. Residents

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 20, 2012) - The executive director of the British Columbia Securities Commission has issued a temporary order and notice of hearing against three men and a B.C.-based company over concerns about unusual trading volume and share price increases.

The temporary order bars all trading or transferring of the shares of Forum National Investments Ltd, a B.C. reporting issuer whose shares trade on the Over-the-Counter Bulletin Board market in the United States. The executive director initially intervened by issuing a halt trade order on June 28, 2012.

Daniel Clozza, Martin Tutschek, and Grant Curtis, all of whom are residents of B.C., are named in the notice of hearing. Clozza is the President, Chief Executive Officer, and a director of Forum National, while Tutschek is the Chief Financial Officer and a director of the company. Curtis is a shareholder.

The notice says that BCSC staff is concerned with the unusual trading volume and price increase for shares of Forum National that took place between May and June of 2012. Staff is also concerned with apparent attempts to violate or circumvent the halt trade order by transferring or issuing shares of Forum National.

During the relevant period, the market for Forum National shares experienced a sudden increase in trading volume and price. In fact, the market capitalization of Forum National increased from just over USD $6 million, to over USD $120 million.

During this sudden increase, Forum National was the subject of an internet promotional campaign funded by undisclosed persons, and the company itself issued seven news releases related to the expansion of its viatical settlement business.

BCSC staff requested that Forum National issue a clarifying news release explaining what role, if any, the company or any its management had in the promotional internet campaign. To date, the company has declined to issue the release.

These allegations have not been proven. Counsel for the executive director will apply to extend the temporary order on July 31, 2012 at 10:00 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 by typing Daniel Clozza, Martin Tutschek, Grant Curtis, Forum National Investments Ltd. or 2012 BCSECCOM 294 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).

For media inquiries, contact Richard Gilhooley, media relations, 604-899-6713. For public inquiries, call 604 899 6854 or 1 800 373 6393 (toll free).

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Contact Information

  • British Columbia Securities Commission
    Richard Gilhooley
    604-899-6713 or (Canada) 1-800-373-6393