News Release
Promoter agrees to 10-year ban for issuing exaggerated news releases
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Date:
2000-10-24 -
Number:
2000/46
Released:10/24/00 Contact: Dean Pelkey
NR 00-46 (604) 899-6880 or
(BC only) 1-800-373-6393 Vancouver -- Vancouver stock promoter Jimmy John has signed an agreement with the British Columbia Securities Commission that will ban him from the market for 10 years.
According to the agreement, John cannot trade any security, engage in investor relations activities, or become an officer or director of any reporting issuer in B.C. for the next 10 years. John must also resign any position he currently holds as a director or officer of a B.C. reporting issuer.
John faces a similar 10-year ban in Alberta as a result of a May 1999 Alberta Securities Commission decision.
The agreement allows John to dispose of securities he currently owns within one year provided he obtains permission of the BC Securities Commission's executive director.
John was the president and chief executive officer of Naxos Resources Ltd. when the company was delisted from the former Alberta Stock Exchange in 1997 for breaching ASE requirements -- primarily issuing inaccurate news releases and late filing of insider trading reports.
In 1999, the Alberta Securities Commission found John was primarily responsible for issuing news releases from Naxos that contained exaggerated language, misleading information or omitted unfavourable results.
John displayed "a wanton disregard for the necessity of issuing accurate press releases," the Alberta commission said.
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 Media Relations Officer Dean Pelkey at 899-6880. Backgrounder
Here is a list of agreed statements of fact reached between Jimmy John and the Executive Director. Text of the full agreement can be found in the documents database at www.bcsc.bc.ca.
2.1 John is a resident of British Columbia, and was at all material times the President, Chief Executive Officer and a director of Naxos Resources Ltd. (“Naxos”).
2.2 Naxos was incorporated pursuant to the Canada Business Corporations Act. The shares of Naxos were traded on the former Alberta Stock Exchange (the “ASE”) until July 18, 1997, when it was delisted for breach of the ASE requirements. Naxos is registered as an extra-provincial company and is a reporting issuer in British Columbia.
2.3 On March 18, 1999, the Alberta Securities Commission (the “ASC”) handed down a decision (the “ASC Decision”), after a hearing under sections 165 and 167 of the Alberta Securities Act, S.A. 1981, c. S-61, as amended, (the “Alberta Act”) with respect to allegations of the issuance of inaccurate press releases and the late filing of insider reports against John.
2.4 The ASC found that:
2.4.1 John was at all material times the President, CEO and a director of Naxos and the principal architect involved in issuing numerous press releases by Naxos;
2.4.2 John has displayed a wanton disregard for the necessity of issuing accurate press releases;
2.4.3 a number of press releases either contained exaggerated language, misleading information or omitted to publish unfavourable results;
2.4.4 John engaged in a fairly continuous course of conduct whereby press releases were used for purely promotional purposes without due regard for the truth; and
2.4.5 there has been a consistent pattern of late filing of insider reports by John in respect of his trading in Naxos shares.