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 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.