British Columbia Securities Commission

British Columbia Securities Commission

November 19, 2010 09:00 ET

British Columbia Securities Commission: Panel Permanently Bans Fraudster and Orders Him to Surrender Ill-Gotten Gains

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 19, 2010) - A British Columbia Securities Commission panel has permanently banned a man who perpetrated a fraud and three companies he controlled from B.C.'s capital markets, and ordered the four respondents to pay Cdn $1.75 million in penalties and to disgorge US $1.14 million raised from investors.

On Oct. 7, 2010, a BCSC panel found that Steven Peter Kyllo, while a resident of B.C., perpetrated a fraud on 40 investors in the U.S. and Canada when he lied to them, and used their funds to enrich himself and his family members, and for other purposes. The panel also found that Kyllo and three corporate respondents (Moenkopi Resources Inc., Mercury Capital S.A., and Frey Mining Company Ltd.) he used to raise a total of US $1.14 million from the investors contravened other B.C. securities laws.

For his misconduct, the panel permanently banned Kyllo from trading securities or exchange contracts and from being a manager or consultant in connection to the securities market. He is also prohibited from being a director or officer of any issuer, registrant or investment fund manager, being a registrant, investment fund manager or promoter, and from engaging in investor relations activities.

"Kyllo is a confirmed wrongdoer whose presence in our markets constitutes an ongoing and serious risk to investors," the panel said. "Our orders are intended to address that risk permanently."

Additionally, the panel fined Kyllo Cdn $250,000, and ordered the three corporate respondents to pay penalties of Cdn $500,000 each – the maximum administrative penalties the panel could order due to the legislation at the time the conduct occurred. The panel also ordered the respondents to disgorge the US $1.14 million obtained from their misconduct.

Finally, the panel ordered Moenkopi, Mercury, and Frey securities permanently cease traded. It also permanently prohibited the three companies from becoming or acting as a registrant, investment fund manager, or promoter, and from engaging in investor relations activities.

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, Steven Peter Kyllo or 2010 BCSECCOM 626. If you have questions, contact Ken Gracey, media relations, 604-899-6577.

Learn how to protect yourself and become a more informed investor at www.investright.org.

Contact Information

  • British Columbia Securities Commission
    Ken Gracey
    media relations
    604-899-6577 or (Canada) 1-800-373-6393
    www.bcsc.bc.ca