March 28, 2013
/CNW/ - The Ontario Securities Commission approved a settlement agreement yesterday between Staff and
(Boily). Boily was a geologist with 30 years of experience and the Qualified Person for Bear Lake Gold Ltd., a mining exploration company and a reporting issuer listed on the TSX Venture Exchange.
The matter is the first case to come before the Commission that pertains to the conduct of a "Qualified Person", a gatekeeper of technical information under National Instrument 43-101 -
Standards of Disclosure for Mineral Projects
In the agreed facts, Boily admitted that during the period of
- altered certain assay results received by Bear Lake and transferred these results into the company's assay database;
- prepared draft press releases for Bear Lake that contained incorrect and inflated data based on the altered results and which was then issued to the market; and that he
- provided Independent Qualified Persons, who were retained to prepare a technical report for Bear Lake (as required by NI 43-101), with altered assay results and assay databases that contained results which were calculated based on these altered results, and he engaged in other misconduct, including replacing core and modifying a drill core log.
was halted on
July 17, 2009
, following which
announced that it had become aware of material inconsistencies in its exploration results. Boily admitted that upon resumption of trading on
July 28, 2009
suffered a market capitalization loss, on one day alone, of over
In reaching the settlement, Boily admitted that he:
- perpetrated a fraud in relation to his conduct with the Independent Qualified Persons;
- breached the prohibition against issuing misleading and untrue statements to the market;
- engaged in conduct which he reasonably ought to have known resulted in, or contributed to, an artificial price for Bear Lake securities; and
- engaged in conduct which was not only contrary to the public interest, but abusive to the integrity of Ontario's capital markets.