British Columbia Securities Commission

British Columbia Securities Commission

July 04, 2012 13:30 ET

BCSC Panel Finds That OTC Bulletin Board Company and Two Directors Broke Securities Laws

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 4, 2012) - A British Columbia Securities Commission panel has found that a company quoted on the US OTC Bulletin Board and two of its directors contravened securities laws when it issued false news releases.

The panel found that Brookmount Explorations Inc, Peter John Flueck and Zafer Erick Sungur made misrepresentations in news releases it 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 stating 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 US Securities and Exchange Commission.

Additionally, the panel found that Flueck and Sungur breached a BCSC cease trade order when they sold Brookmount Explorations securities in July and August 2007.

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 Brookmount Explorations Inc, Flueck, Sungur or 2012 BCSECCOM 250 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.

Contact Information

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