March 10, 2011
BCSC Executive Director’s Bulletin: Over-the-counter issuer temporarily cease traded while securities regulator seeks clarification on promotional activities
Vancouver – The executive director of the British Columbia Securities Commission has issued a temporary order to cease trading in the securities of Kunekt Corporation, and has given a notice of hearing to ask for orders against the company and one of its directors, Mark Bruk.
Bruk, a B.C. resident, is a director and officer of Kunekt Corporation, which trades on the U.S. over-the-counter market.
The temporary order bars all B.C. trading of the securities of Kunekt Corporation, a Nevada company, until a hearing is held and a decision is rendered.
Prior to issuing the temporary order, the BCSC halted trading of Kunekt Corporation securities on two occasions in March of 2011 because of unusual trading volume and pricing in the issuer’s shares.
The notice of hearing alleges that promotional material about Kunekt Corporation was disseminated on the Internet in January and February of 2011, which included claims that the company could provide profits of 5,192 per cent by summer 2011.
Additionally, the notice of hearing states that efforts to speak to Bruk about the promotional material were unsuccessful. It also states that the BCSC has not received a response to a production order that was sent to Bruk, and two production orders sent to the company.
At the hearing, counsel for the executive director will ask a commission panel to grant an order that all persons cease trading in the securities of Kunekt Corporation until:
- The company and Bruk have complied with the BCSC production orders
- The company has publicly disclosed the extent to which Kunekt Corporation and its directors, officers and insiders were involved in or had knowledge of the promotional material
These allegations have not been proven. The hearing will be held at the 12th floor hearing room, 701 West Georgia St., Vancouver, B.C. on March 22, 2011 at 9:00 a.m.
The B.C. Securities Commission is the independent provincial government agency responsible for regulating trading in securities within the province. You may view the notice of hearing on our website, www.bcsc.bc.ca. If you have questions, contact Ken Gracey, media relations, 604-899-6577.