Ex-Southwestern CEO admits to fraud
Written on June 26, 2009
VANCOUVER–The former president and CEO of Southwestern Resources Corp., John Paterson, has settled with the British Columbia Securities Commission after admitting to fraud and illegal insider trading related to the Boka project in China.
The commission said yesterday that Paterson admitted to:
Entering false assay results related to the Boka project into the company database.
Causing the false data to be reported in 24 news releases between March 7, 2003, and Feb. 21, 2007.
Illegal insider trading by selling 50,000 Southwestern shares on July 16, 2007, at a price of $5.96 per share, or about $298,200.
On July 19, 2007, the day Southwestern announced the errors in the previously reported assay results for the Boka project, the trading price of Southwestern shares closed at $2 online cash advance.90. The commission said Paterson avoided a loss of about $153,000.
"He traded with the knowledge that Southwestern would have to issue a news release correcting the gold assay values for the Boka project," the commission said.
Paterson, a geologist, is banned for life from preparing mining disclosure for issuers, trading securities or acting as a director or officer.
Paterson is unable to pay the $3.5 million fine the commission would have imposed.
The Canadian Press
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