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Vancouver junior mining pump-and-dump scheme exposed
Vancouver junior mining pump-and-dump scheme exposed
A Vancouver businessman has been temporarily banned from securities trading and will be hauled before a BC Securities Commission panel later this month to answer charges he ran a pump-and-dump scheme involving a junior mining company.
The BCSC alleges Volkmar Guido Hable artificially pumped the stock of Samaranta Mining Corp. in 2013 and then dumped his shares in a somewhat unsophisticated pump-and-dump scheme. The allegations have not been proven in court.
Prior to the alleged market manipulation, Hable had been the CEO of Samaranta, a junior exploration company focused on a gold property in Colombia.
Samaranta changed its name to Icon Exploration Inc. (TSX-V:IEX.H) in 2013, a few months after Hable had dumped his stock and resigned as a director for the company.
Hable is also a director for a Singapore-based company called Samarium Group Holding Ltd.
On February 19, 2013, Hable issued a news release claiming Samarium planned to take a 51% stake in Samaranta.
Hable claimed Samarium would buy 51% of Samaranta’s common stock at $0.12 per share – an exorbitant price, given that Samaranta’s shares had been trading at $0.02 per share. The purchase would have been worth $3 million.
As Samaranta’s stock began moving up, so too did the trading volume. Over a period of a few days in February 2013, Samaranta’s shares went up from $0.02 to $0.05 per share. A massive amount of shares were traded – 22.1 million – over a four-day period between February 19 and 22, 2013.
To continue reading please click link http://www.mining.com/web/b-c-businessman-faces-allegations-he-ran-pump-and-dump/