News Release

Vancouver -- The British Columbia Securities Commission has found that a suburban Burnaby man used the Internet to perpetrate “pump and dump” schemes and manipulate stock prices.

In its findings, a commission panel ruled that Jesse J. Hogan used the Internet to disseminate misrepresentations about five companies and manipulate the market in their shares.

Each of the five companies was a penny-stock technology firm quoted on the Over-the-Counter Bulletin Board. Hogan, in his mid-20s, used the same pump and dump scheme for each. He bought shares in the company, posted hundreds of false messages on Internet bulletin boards suggesting that the company was about to be taken over, watched the share price rise on the basis of this false information, and sold his shares at a profit. His total profit was $41,752 US.

The panel found that Hogan’s activities violated the Securities Act and “seriously impaired the integrity of the capital markets” and were contrary to the public interest.

“Hogan exploited the vulnerabilities of the Internet to widely disseminate misrepresentations about five companies and, in doing so, conduct a blatant and highly effective market manipulation,” concluded the panel.

“Unlike the classic manipulation, which typically involves a number of people and a complex program of trading activity, Hogan’s scheme was simple, sweeping and fast.”

The commission will hear further from the parties before considering sanctions.

The B.C. Securities Commission is the independent provincial government agency responsible for regulating trading in securities and exchange contracts within the province. Copies of the decision can be viewed in the documents database of the commission’s website www.bcsc.bc.ca or by contacting Andrew Poon, Media Relations, 604-899-6880.