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Non-Tech : SLJB - Sulja Brothers Building Supply, Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Buckey who wrote (1614)	12/16/2008 8:26:54 AM
From: scion	Read Replies (1) \| Respond to of 1681

$11.5M stock scheme alleged Harrow man arrested Doug Williamson, Windsor Star Published: Tuesday, December 16, 2008 canada.com HARROW - In what promises to be a lengthy legal process that already has been two years under investigation, a Harrow businessman has been charged with two counts of fraud -- netting over $11.5 million -- in an alleged stock market manipulation scheme. The RCMP's Integrated Market Enforcement Team arrested Petar Vucicevich, 43, Monday after a referral from the Ontario Securities Commission covering a period between July 31 and Dec. 31, 2006. Vucicevich, dressed in black, stood quietly in the prisoner's docket in a Windsor courtroom as a justice of the peace read out conditions of his release from custody. a123.g.akamai.net View Larger Image CHARGED: Petar Vucicevich, former Sulja Bros. owner, walks out of Provincial Court Monday. Vucicevich was released on $100,000 bail. He has been charged with two counts of fraud for alleged stock manipulation. Dan Janisse, Star His mother-in-law posted a surety of $100,000. He was ordered to surrender his passport to the RCMP, remain in Ontario and cannot be involved in a publicly traded company. He also cannot solicit investments from the public. He was also ordered to not be in contact with 35 individuals whose names were read out in the courtroom. A publication ban was ordered in Monday's court proceeding. But an RCMP news release spelled out the allegations against the colourful Vucicevich. Police said Vucicevich "orchestrated and participated" in market manipulation of shares of Sulja Bros. Building Supplies Ltd., or Sulja. Sulja is owned by Sulja Brothers Building Supplies Ltd., a former lumberyard in Harrow. The RCMP said that Vucicevich, as the interim president, CEO and "controlling mind" of the then publicly traded company, caused false or misleading news releases to be issued to "generate and sustain interest of prospective investors." The shares were traded for profit exceeding US$11.5 million. Police said that some of the proceeds were used to buy 11 properties worth more than C$1 million in the Colchester area, which have now been frozen by restraining orders. RCMP also allege that the lumberyard was depleted of assets and closed, putting 30 people out of work. A new company called Premium Building Supplies was to be opened in Calgary but never became operational as a business. The OSC issued a cease trade order against Sulja Brothers, Vucicevich and others on Dec. 22, 2006, and a hearing is scheduled next Nov. 19. Dan Scott, Vucicevich's Windsor lawyer, said it will take "months" to review the allegations. "He has maintained his innocence all along and we certainly expect to challenge the allegations," Scott said Monday. His next court appearance is Feb. 19. In the meantime, Scott said he didn't know how Vucicevich would earn a living, although he said there is nothing to prevent him from working for a privately held company. In a statement, the RCMP said restraining the 11 properties is a first for the IMET and is designed "to send a message to fraudsters that we will also pursue their ill-gotten gains." "Frauds of this nature have a destabilizing effect on the economy and shake investor confidence in the capital markets," said Supt. Kevin Harrison. "This particular matter had a devastating effect on the micro economy in the small town of Harrow." The OSC had pursed its own allegations against Sulja Bros., Vucicevich, who was a former CEO of the company, and a Windsor-based company called Kore International Management Inc., which was run by Vucicevich. Throughout 2006, the OSC alleges numerous false news releases touting deals worth hundreds of millions of dollars were issued on behalf of Sulja Bros., which trades in electronic penny stock markets as SLJB. At the same time, the OSC says the stock was being sold to investors around the world using brokerage accounts in the names of Kore employees. canada.com