News Release

Vancouver – The Executive Director of the British Columbia Securities Commission has issued a notice of hearing alleging that a North Vancouver man breached securities laws when he failed to file accurate insider reports on companies for which he was a director, officer and insider.

The notice alleges that Mark Aaron McLeary, a resident of North Vancouver, B.C., failed to file insider reports about trades he made in two companies for which he served as a director, officer, and insider. The two companies, Golden Sun Mining Corp. and Chlormet Technologies Inc., are both B.C. reporting issuers.

BCSC staff maintains that in September 2010, McLeary took steps to conceal his trading from the BCSC and the public by opening a trading account in Panama in the name of a newly created Panamanian holding company that he controlled, Pecado Capital, S.A. McLeary did most of his subsequent trading in Golden Sun and Chlormet between 2011 and 2013 through his Panama account.

As an insider of Golden Sun and Chlormet, McLeary was required by securities laws to report all of his worldwide transactions in shares of these issuers to the BCSC. However, McLeary only reported transactions in these issuers made through his Canadian accounts. He failed to report any of his Panamanian account transactions.

BCSC staff contends that McLeary’s failure to report his secret trading in Golden Sun was particularly misleading because while he, the president of Golden Sun, was secretly selling 870,000 of his own Golden Sun shares for proceeds of over $420,000, the company was actively engaged in a promotional campaign to get the public to buy its shares.

In March 2014, McLeary was cease traded for his failure to file insider reports. Following this, and after BCSC staff confronted him with his Panama account documents and statements, McLeary updated his insider reporting to include the transactions in his Panama account, and paid late filing fees of $5,250. The cease trade order was revoked in May 2014.

These allegations have not been proven. Counsel for the Executive Director will apply to set dates for a hearing into the allegations before a panel of commissioners on January 6, 2015 at 9:00am.

You may view the notice of hearing on our website www.bcsc.bc.ca by typing Mark Aaron McLeary or 2014 BCSECCOM 477 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).

About the British Columbia Securities Commission (www.bcsc.bc.ca)

The British Columbia Securities Commission is the independent provincial government agency responsible for regulating capital markets in British Columbia through the administration of the Securities Act. Our mission is to protect and promote the public interest by fostering:

• A securities market that is fair and warrants public confidence
• A dynamic and competitive securities industry that provides investment opportunities and access to capital

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Media Contact:
Richard Gilhooley, Media Relations
604-899-6713
mediarelations@bcsc.bc.ca

Public inquiries:
604-899-6854 or 1-800-373-6393 (toll free)
inquiries@bcsc.bc.ca

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