VANCOUVER, Nov. 17, 2016 /CNW/ - A British Columbia Securities Commission (BCSC) panel has dismissed fraud allegations against Robert James Maddigan and 0902395 B.C. Ltd. In an amended notice of hearing issued January 23, 2015, BCSC staff alleged that Maddigan, an Alberta resident, and 0902395 committed fraud by failing to deliver shares or return the money of two investors who had lent money to 0902395. Maddigan is the sole director and officer of 0902395, a non-reporting B.C. company. 0902395 was a consultant to a coal company for the acquisition of a coal mine in Mongolia. In return, the coal company agreed to issue some of its shares to 0902395. 0902395 entered into loan agreements with 34 investors. Under those agreements, the investors were promised shares of the coal company, or in the alternative, a return of their funds. In 2012, 0902395 received nine million shares from the coal company and, in 2013, transferred the shares to some of the investors. However, 0902395 did not fulfil the terms of its loan agreements with two investors. Instead, 0902395 chose to transfer certain of the shares to other of its creditors instead of the two investors. In its decision, the panel dismissed the fraud allegations, stating "There was no suggestion by the executive director, nor was there any evidence to show, that the debts repaid by the respondents ahead of their obligations to Investors A and B were anything other than bona fide legal obligations." The panel also noted that the respondents' "conduct lacks the requisite element of dishonesty for fraud."