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 the company issued false news releases.
The panel found that Ferndale, Washington-based Brookmount Explorations Inc. and Peter Flueck and Zafer Sungur made misrepresentations in news releases issued between February 2005 and June 2007.
“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,” BCSC said in a news release.
Additionally, the panel found that Flueck and Sungur breached a BCSC cease trade order when they sold Brookmount securities in July and August of 2007.
The panel has directed the parties to make submissions on sanctions.
