Investigators called it a “pump-and-dump scheme” that saw 4.8 million shares in a shell company sold for nearly $4.8 million US during a four-month period, beginning in late 2009.
Now, a British Columbia Securities Commission panel has found that a businessman with ties to Newfoundland engaged in a “market manipulation.”
The panel found that Michael Mugford and David Tuan Seng Lim were responsible for the “artificial” share price of a shell company in the natural foods business.
Mugford spent much of his career in British Columbia, but has ongoing personal and business ties to Newfoundland and Labrador.
While Mugford faces possible sanctions from securities regulators in B.C. for his past conduct, a CBC News investigation has found that he is linked to an unrelated health-foods initiative in Newfoundland.
Rob Antle – CBC News – June 15, 2017.