The Alberta Securities Commission announced a settlement with Mercury Partners and Company Inc. (now Black Mountain Capital Corporation) and its former principal Tian Kusumoto. Mercury and Kusumoto were facing allegations of violations of takeover bid rules and insider/control person reporting obligations to acquisitions of securities of Cybersurf Corporation and Takla Star Resources Ltd.

Mercury will be fined $50,000 for using nominee corporations-privately owned by Kusumoto’s sister Jasmin Auck and his childhood friend Shaun Cockburn-to accumulate share positions in acquisition targets.

Kusumoto was set a fine of $50,000 for coordinating and trading in the nominee accounts and for failing to ensure Mercury made the proper filings with the ASC. He also agreed to cease trading in securities (with some exceptions) and not to act as a director or officer for nine years.

Cockburn and Auck also settled with the ASC agreeing to pay $15,000 and $12,500 respectively. Cockburn admitted to purchasing shares of Mercury’s acquisition targets through his holding company 864220 Alberta Ltd. and so agreed to cease trading in securities and refrain from acting as a director or officer for four years. Auck faces the same penalty but for a period of only a year and an half.

On June 10, the ASC issued a notice of hearing against Tian Kusumoto’s brother, Tom Kusumoto, also a prinicipal of Mercury. The allegations are much the same as those brought against Tian.

The settlement agreement and the notice of hearing can all be found on the ASC website.