RE:Must be quite a case the ASC is putting togethermdjbrown wrote: It been more than 2 months since the ASC have reported anything regarding this one.
Now that the long drawn out Poseiden Case is wrapping up, it should give them more time to focus on SJL.
Interesting to note that the Poseiden Case also included contravention of Sec 93,
3. Fraud
[94] Section 93 of the Act states:
No person or company shall, directly or indirectly, engage or participate or attempt to engage or participate in any act, practice or course of conduct relating to a security, a derivative or an underlying interest of a derivative that the person or company knows or reasonably ought to know may . . .
(b) perpetrate a fraud on any person or company.
and the following was established by the ASC on that basis:
3. Fraud is Established
[135] All elements of fraud are established here. We therefore find that Kostelecky engaged or participated in practices and a course of conduct at Poseidon that perpetrated a fraud on investors in Poseidon shares, in contravention of section 93(b) of the Act.
4. Conduct Contrary to the Public Interest
[136] Fraud is self-evidently antithetical to investor protection and a fair and efficient capital market. It follows, and we find, that Kostelecky's fraudulent conduct was contrary to the public interest.
The problem with the Poseidon decisions were that the ASC did not thoroughly complete their investigations. The BOD's of both Poseidon and Open Range knew that fraud was being committed even before the reverse spinout.
Kostelecky was simply the fall guy!
Kherson