By Otto Rock
A bit of a WTF from the BCSC this evening, as its press release updating on the so-called (and they so-called it, after all) “BridgeMark Scam” has revised and extended temporary prohibitions and cease-trade orders. But only on some of the players, not all of them and, believe it or not, one of the named entities no longer under prohibition order is BridgeMark Financial Corp. The reason seems to be buried in the decision document, where the judge on the case has agreed that in four of the eleven companies the prosecution has provided enough evidence but in the other seven, they have not. Here’s the segment, from page 15 of the decision:
“With respect to the remaining seven Issuers (Kootenay, Affinor, Beleave, Liht, PreveCeutical, Speakeasy and Abattis), we find that the executive director has not provided prima facie evidence of their having engaged in conduct contrary to the public interest. The evidence establishes that they completed private placements with certain of the Non-Issuer Respondents using the Consultant Exemption and that the subscribers then quickly sold most of their shares acquired in the private placements at an average price less than the subscription price. There is also evidence that three of these Issuers paid significant consulting fees during the same financial period as the private placements, but we have no evidence on the nature of these services and to whom they were paid. That is suspicious and involves elements of the transactions of the other four Issuers. However, this evidence is closer to the “unsubstantiated suspicion” described in Fairtide than prima facie evidence of misconduct. Therefore, we are not going to extend the temporary orders against these seven Issuers.”
Another day of absolute BS in the Canadian capital markets. I mean, even when the BCSC is brought out of its perma-slumber by the US SEC and forced to take action to clamp down on these scamsters, the case gets thrown out at the first instance by the courts. Absolutely incredible.
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