Back to BBBers - I went weeks without scraping bottom. I know you know how this works but This NR shows how the OTC CDN sweatshops operated. I got on these guys mail and phone list - Ironically I even owned one of the stocks in question. actually the pres of that company ran the niz out of his basement only 2 minutes from my house.
anyway here it is
Ontario Securities Commission -
OSC in the matter of A.C. MacPherson & Co.
Ontario Securities Commission
ONSEC
Shares issued 0
1899-12-30 close $0
Tuesday Mar 28 2000
Mr. John Stevenson reports
The Ontario Securities Commission has issued a notice of hearing and statement
of allegations against A.C. MacPherson & Co. Inc. and Geno Della Rocca. A.C.
MacPherson is registered as an investment dealer. Mr. Della Rocca is the
president and chief executive officer of the firm.
The allegations relate to A.C. MacPherson's conduct in selling shares of two
issuers to the firm's own clients during 1996 and 1997. Staff of the commission
alleges that A.C. MacPherson purchased the shares at a significant discount to the
market price, and that the firm then applied excessive markups before selling the
shares to its clients. Staff alleges that in doing so, A.C. MacPherson may have
placed itself in a conflict of interest with its clients, and that it acted contrary to the
public interest.
The hearing will commence on April 6, 2000, at 10 a.m., in the King Room at the
Marriott Hotel, 525 Bay St., Toronto. The purpose of the hearing will be for the
Ontario Securities Commission to consider whether to approve a proposed
settlement of this matter. Terms of the proposed settlement will only be released if
and when the commission approves the proposal.
The Ontario Securities Commission will hold a hearing pursuant to Subsection
127(1) of the Securities Act, RSO 1990, c. S.5, as amended on April 6, 2000, or
as soon thereafter as the hearing can be held:
to consider whether, pursuant to Subsection 127(1) of the act, it is in the public
interest for the commission to make an order:
that the registration of A.C. MacPherson & Co. Inc. (A.C. MacPherson) and/or
Mr. Della Rocca be suspended or restricted for such time as the commission may
direct, or be terminated, or be subject to such terms and conditions as the
commission may order;
that the respondents be reprimanded;
that the respondents pay costs to the commission; and/or
such other order as the commission may deem appropriate; and
to consider such other matters as the commission considers appropriate.
At the hearing on April 6, 2000, the commission will consider whether to approve
a proposed settlement of this matter.
Any party to the proceeding may be represented by counsel if that party attends
or submits evidence at the hearing.
Upon failure of any party to attend at the time and place aforesaid, the hearing
may proceed in the absence of that party and such party is not entitled to any
further notice of the proceeding.
Staff of the Ontario Securities Commission makes the following allegations:
The respondent A.C. MacPherson & Co. Inc. is registered under Ontario
securities law as an investment dealer. The respondent Mr. Della Rocca is
registered under Ontario securities law and is the president and chief executive
officer of A.C. MacPherson.
During the years 1996 and 1997, virtually all of A.C. MacPherson's business
consisted of its acquiring stock for its own account and selling that same stock to
its clients.
In 1996, more than two-thirds of A.C. MacPherson's revenue from principal
trading was derived from trading stock of seven issuers. In the following year,
approximately 99 per cent of its revenue from principal trading was derived from
the same seven issuers, all of which traded on the Canadian Dealing Network.
Those issuers included the following two:
Heartland Resources Inc.; and
Complex Minerals Corp.
In the case of both of these issuers, A.C. MacPherson acquired stock at a
significant discount to what was then the market price of the stock. A.C.
MacPherson then resold that stock to its own clients at excessive markups.
Heartland Resources Inc.
Between Oct. 19, 1995, and June 25, 1996, A.C. MacPherson acquired five
million shares of Heartland Resources Inc. at prices ranging from 21.5 cents to 32
cents per share. During the same time period, the market price of Heartland
shares ranged from 55 cents to 90 cents.
Between June 18 and July 25, 1996, A.C. MacPherson acquired a further
640,000 shares of Heartland at prices ranging from 23.275 cents and 32 cents
per share. During the same time period, the market price ranged from 55 cents to
75 cents per share.
Between April 18 and June 27, 1997, A.C. MacPherson acquired an additional
four million shares of Heartland at prices ranging from 16 cents to 20 cents per
share. During the same time period, the market price ranged from 50 cents to 67
cents per share.
During the period from Nov. 7, 1995, to Aug. 31, 1997, A.C. MacPherson sold
substantially all of its Heartland shares to its own clients. A.C. MacPherson sold
the shares at prices ranging from 35 cents per share to $1.10 per share, and
realized a gross profit of several million dollars.
Complex Minerals Corp.
From Dec. 29, 1995, to Oct. 10, 1996, A.C. MacPherson acquired 7.7 million
shares of Complex Minerals Corp. at prices up to 33 cents per share. The market
price ranged from 40 cents to $1 per share. A.C. MacPherson subsequently
acquired an additional 500,000 shares.
During the period from Feb. 5, 1996, to Aug. 31, 1997, A.C. MacPherson sold
substantially all of its Complex shares to its own clients. A.C. MacPherson sold
the shares at prices ranging from 30 cents to 95 cents per share, and realized a
gross profit of several million dollars.
Conduct of the respondents
In engaging in the conduct set out above, A.C. MacPherson may have placed
itself in a conflict of interest with its clients. Its conduct was therefore contrary to
the public interest.
In allowing A.C. MacPherson to engage in the conduct set out above, Della
Rocca, as a registrant under Ontario securities law, acted in a manner contrary to
the public interest.
Such additional allegations as Staff may make and as the commission may permit. |
