News Release
Securities Commission Releases Toodoggone Gold Inc. Decision
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Date:
1991-07-25 -
Number:
91/01
Released: July 25, 1991 Contact: Ron Messent 660-4800
The British Columbia Securities Commission today released its decision in the matter of Toodoggone Gold Inc., and Errol Hemingson and his wife Margaret Alexa Hemingson.
The Commission ordered:
1. the removal of trading rights for Errol Hemingson and Alexa Hemingson for 20 years and 10 years respectively,
2. that Errol Hemingson and Alexa Hemingson be prohibited from acting as directors and officers of reporting issuers for 20 years and 10 years respectively, and
3. that Errol Hemingson and Alexa Hemingson be prohibited from acting as directors and officers of any issuer that provides management and administrative, promotional, or consulting services to reporting issuers for 20 years and 10 years respectively.
2. that Errol Hemingson and Alexa Hemingson be prohibited from acting as directors and officers of reporting issuers for 20 years and 10 years respectively, and
3. that Errol Hemingson and Alexa Hemingson be prohibited from acting as directors and officers of any issuer that provides management and administrative, promotional, or consulting services to reporting issuers for 20 years and 10 years respectively.
The Commission found that Hemingson, as chief executive officer and a director of Toodoggone Gold Inc. with the assistance of Alexa Hemmingson misappropriated for his own benefit, a significant amount of the net proceeds raised under Toodoggone's prospectus and allocated for resource property development.
The Commission found that in doing so, Hemingson deliberately disregarded regulatory requirements and was responsible for causing Toodoggone to:
misrepresent material facts in its prospectus,
breach its continuous disclosure obligations under the securities legislation, and
breach the Rules of the Exchange and its listing agreement.
The Commission also found that Hemingson's conduct breached the duties of conduct and care required of an officer and director of a reporting issuer.
The Commission stated:
"Public confidence in the integrity of the capital markets in British Columbia has been substantially eroded and the investing public has been seriously harmed by the conduct of Hemingson and Alexa."
Copies of the Commission's decision (24 pages) may be obtained in person at 1100 - 865 Hornby Street, Vancouver, British Columbia.