VANCOUVER, July 4, 2012 /CNW/ - A British Columbia Securities Commission
panel has found that a company quoted on the US OTC Bulletin Board and
two of its directors contravened securities laws when it issued false
news releases.
The panel found that Brookmount Explorations Inc, Peter John Flueck and
Zafer Erick Sungur made misrepresentations in news releases it issued
between February 2005 and June 2007. In doing so, the company also
contravened National Instrument 43-101, the national standard for
mining disclosure.
The news releases falsely stated the value of Brookmount's principal
mining property by stating that it had mineral reserves when in fact it
had none, contrary to both geological reports Brookmount had received,
and what Brookmount had reported in its filings with the US Securities
and Exchange Commission.
Additionally, the panel found that Flueck and Sungur breached a BCSC
cease trade order when they sold Brookmount Explorations securities in
July and August 2007.
The panel directed the parties to make submissions on sanctions
according to the schedule set out in the findings.
The B.C. Securities Commission is the independent provincial government
agency responsible for regulating trading in securities within the
province. You may view the decision on our website, www.bcsc.bc.ca, by typing Brookmount Explorations Inc, Flueck, Sungur or 2012 BCSECCOM
250 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).
Learn how to protect yourself and become a more informed investor at www.investright.org
