scott patersonI owned shares in a few companies back in the late 90s, early 00s in which Paterson was a principal....When he was with Yorkton, they raised billions of dollars for many small companies that went belly up after the Yorkton insiders had made their millions. The OSC didn't like the way Paterson did business either.
One example:
"Stormy Weather
John Gray
Canadian Business Online, October 7, 2002
It wasn’t so long ago that Book4golf.com Corp., the once-high-flying dot-com venture, promised to revolutionize the game by letting customers book tee-off times at hundreds of golf courses over the Internet. Scott Paterson, former chairman and CEO of Yorkton Securities Inc.—who resigned after settling conflict-of-interest allegations filed by the Ontario Securities Commission and agreeing to make a $1- million payment last December—once predicted Book4golf’s stock would surge beyond $100 per share. Today, class-action lawyers are focusing on those remarks, and others, as they prepare lawsuits against Yorkton, Book4golf’s main financial backer. The golf company, of course, is now in receivership. Its stock is virtually worthless, and trading in its shares was suspended in July after most of its board resigned en masse the month before, when Book4golf was unable to renew its liability insurance for directors and officers. As one insurance executive put it: “One does not write fire insurance on a house that is already on fire.â€
You can understand why the directors bolted. Without insurance, they and managers could be held personally liable for company debts, unpaid taxes and, worst of all, the potential legal costs and damages like those sought by shareholders in a $500-million suit that has been filed against Yorkton alleging misconduct in its handling of Book4golf."
I am also uncomfortable with the loans between ROR and Paterson and his various personal holding companies. They are detailed in the latest ROR financial reports...nothing illegal I'm sure, but not something I like to see.