News Release

Vancouver – The executive director of the British Columbia Securities Commission has issued a notice of hearing alleging that a tout sheet publisher and the managing director of a Swiss company facilitated the secret promotion of a company traded on the Over-the-Counter-Bulletin-Board (OTCBB) in the United States.

The notice alleges that between October 2009 and July 2010, Colin Robert Hugh McCabe featured several OTCBB-listed companies in tout sheets published and distributed by companies that he controlled. McCabe recommended stocks under his own name in a tout sheet he published called the “Elite Stock Report”, as well as under the pseudonyms Roger Gaines (“Roger Gaines Resource Stock Advisor”) and Joe Marino (“The Stock Profiteer Investment Newsletter”). McCabe resided in Abbotsford, B.C. at all relevant times.

McCabe was asked to feature the OTCBB-listed companies in his tout sheets by Erwin Thomas Speckert, the managing director of a Swiss company called Everest Asset Management. In the notice, BCSC staff contend that Speckert acts as an intermediary for undisclosed persons who secretly promote securities in or through B.C. He is a resident of Minden, Ontario and Zurich, Switzerland.

During the period in question, McCabe’s companies collectively invoiced Emma Marketing Services Inc. – a British Virgin Islands company controlled by Speckert – a total of USD $8.2 million for touting companies quoted on the OTCBB. Each time, Speckert caused Emma Marketing to bill other companies located outside of Canada for investor relations services. 

The notice alleges that on three separate occasions McCabe made false and misleading statements in his tout sheets about Guinness Exploration Inc, a thinly traded OTCBB-listed company.

The notice also alleges that McCabe made false or misleading statements during a compelled interview with BCSC staff.

These allegations have not been proven. Counsel for the executive director will apply to set dates for a hearing into the allegations before a panel of commissioners on September 4, 2012 at 9:00am.

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 by typing Colin Robert Hugh McCabe, Erwin Thomas Speckert or 2012 BCSECCOM 304 in the search box.  Information regarding disciplinary proceedings can be found in the Enforcement section of the BCSC website.

Please visit the Canadian Securities Administrators’ Disciplined Persons List for information relating to persons disciplined by provincial securities regulators, the Investment Industry Regulatory Organization of Canada (IIROC) and the Mutual Fund Dealers Association (MFDA).

For media enquiries, contact Richard Gilhooley, media relations, 604-899-6713. For public enquiries, call 604 899 6854 or 1 800 373 6393 (toll free).

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