British Columbia Securities Commission

British Columbia Securities Commission

November 12, 2008 13:30 ET

BCSC Panel Finds Accountant Illegally Distributed Securities to Canadian Investors

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 12, 2008) - A British Columbia Securities Commission panel found that an accountant acted as an undisclosed director and officer of a TSX Venture Exchange company and violated securities laws when he distributed millions of dollars in debentures to Canadian investors.

In 2001, Henry Jung, a chartered accountant, became active in the operations of Bright Star Ventures Ltd., a B.C.-based mineral exploration company. During his involvement with the publicly traded issuer, Jung prepared financial statements for the company, hired staff, and was active in its day-to-day operations.

Jung also pursued financing opportunities for Bright Star and traded in the securities of the company. Under his direction, Bright Star issued just under $3 million of debentures, now worthless, to about 130 investors in seven Canadian provinces.

Jung denied allegations set out in the notice of hearing that he was a de facto director of Bright Star. Jung claimed he was an "administrator" who was merely acting at the behest of the board of directors.

The commission panel found that Jung was a director and officer of the company, and had illegally traded in and distributed Bright Star securities. The panel also found that Jung had failed to fulfill his obligation to file insider reports.

The notice of hearing also alleged that David John Allen and Reginald Clarke Handford, both former presidents of Bright Star, violated securities laws when they signed quarterly reports that omitted Jung's name as a director and officer of the company. The commission panel found that Allen and Handford did not violate any securities laws.

The panel directed the parties to make submissions on sanctions according to the schedule set out in the findings.

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 in the search box, Henry Jung, David John Allen or Reginald Clarke Handford or 2008 BCSECCOM 588. If you have questions, contact Ken Gracey, Media Relations, 604-899-6577.

Learn how to avoid investment fraud at the BCSC's investor education website: www.investright.org.

Contact Information

  • British Columbia Securities Commission
    Ken Gracey
    (604) 899-6577 or B.C. & Alberta: 1-800-373-6393
    Website: www.bcsc.bc.ca