A B.C. man who faked the takeover of a mining company to sell his shares for profit has been banned from B.C.’s capital markets, fined $400,000 and ordered to pay back the money he made.
Volkmar Guido Hable of Whistler wrote a false letter in February 2013 suggesting his company, Samaranta Mining Corporation, was about to have 51 per cent of its shares purchased by Samarium Group Holding, the B.C. Securities Commission said Wednesday.
Unbeknownst to his investors, Hable, who was the executive vice-president of mining and exploration for Samaranta, had attempted to sell his shares in the company at two and three cents a share, but with limited success.
Just a few days after writing the letter, Hable earned $157,000 in profit by selling all five million of his Samaranta shares at two and six cents a share.
Samarium then issued a news release, withdrawing its takeover bid of Samaranta.
The securities commission said Hable had manipulated the market and submitted a fake document as proof Samarium was able to finance the bid.
He has been ordered to resign any director or officer of any issuer or registrant position he holds.
The panel also banned him from trading in or purchasing any securities or exchange contracts, becoming or acting as a registrant or promoter, acting in a management or consultative capacity in connection with activities in the securities market, and engaging in investor relations activities.
He will have to pay back the $157,000, on top of a fine of $400,000.