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by Mike Caswell

The B.C. Securities Commission has initiated an administrative case against two B.C. men for violations surrounding a group of OTC Bulletin Board shells. The BCSC claims that the men ran three purported mining companies and disguised their control by installing nominee directors. They also sold one of the shells to a British Virgin Islands company, after which it was used in a fraud that resulted in charges against a U.S. man, the BCSC says.

The allegations are contained in a notice of hearing the BCSC released on Friday, Aug. 1. It names as respondents Robert Scott Morrice, a lawyer in Victoria, and Donald Gordon Byrne, a self-employed resident of Lumby, B.C. The BCSC cites the men for their involvement with three shell companies: Edgemont Mining Inc., Interfac Mining Inc. and Jupiter Resources Inc.

The BCSC claims that Mr. Morrice and Mr. Byrne purposely circumvented rules the BCSC imposed in September, 2008, on OTC-BB companies that had connections to the province. The rules were designed to curb abusive activities by B.C. residents operating in the U.S. Among other things, the rules imposed filing requirements that made shell companies more difficult to sell.

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