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News Release

Securities Commission Releases Specogna Decision

  • Date:

    1996-03-08

  • Number:

    96/09

Released: February 29, 1996  Contact: Ron Messent  660-4800 or (BC only) 1-800-373-6393

The British Columbia Securities Commission has prohibited Marino Specogna from participating in the securities markets for 20 years for manipulating the shares of Doromin Resources Ltd., a Vancouver Stock Exchange listed company. Marino Specogna was a director of Doromin and ran its day to day affairs.

In addition, the Commission prohibited Marino Specogna from acting as an officer or director of any reporting issuer for 20 years and ordered that he pay an administrative penalty of $35,000.

On the basis of evidence at the hearing, the Commission concluded that Marino Specogna was responsible for a number of significant violations of securities regulatory standards, many of which were intentional, including:

- disseminating false assay results, which created a misleading appearance of trading activity in, and an artificial price for, the shares of Doromin traded through the Exchange on December 1, 1989, contrary to section 41.1 of the Act;

- trading in 13 brokerage accounts, which created a misleading appearance of trading activity in, and an artificial price for, Doromin shares in 1993, contrary to section 41.1 of the Act;

- failing to file insider reports contrary to section 70 of the Act;

- causing Specogna Minerals, a control person of Doromin, to distribute Doromin shares without a prospectus or available exemption contrary to section 42 of the Act.

The Commission said:

"One of the purposes of securities regulation is to develop and maintain a fair and efficient market that warrants public confidence. Where a person trades in a security and knows that the trading activity creates a misleading appearance of trading activity, and an artificial price, for a security traded on the Exchange, this purpose is frustrated. Fiction is substituted for fact. ....the market for Doromin shares was distorted by Marino Specogna and made into a stage-managed performance. The trading .... had an enormous illusory effect on the reported trading activity in Doromin. We find that Marinos Specognas trading of Doromin shares through the Group Accounts in 1993, seriously prejudiced the public interest."

The Commission also determined, based on various contraventions of the securities legislation, that it was in the public interest to make the following orders, that:

- Specogna Minerals Corporations trading privileges be withdrawn for 20 years; Specogna Minerals is a private company owned by Efrem and Lucia Specogna;

- Efrem Specognas trading privileges be withdrawn for four years and that he pay an administrative penalty of $5,000; Efrem Specogna was a director and the president of Doromin; and

- Lucia Specognas trading privileges be withdrawn for one year and that she pay an administrative penalty of $1000.

The British Columbia Securities Commission is a provincial government agency responsible for regulating trading in securities and exchange contracts.

Copies of the Commission's decision (21 pages) may be obtained in person at 1100 - 865 Hornby Street, Vancouver, British Columbia.