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by Mike Caswell

A B.C. Securities Commission panel has found former Global Securities Corp. broker David Lim liable for an OTC Bulletin Board manipulation. The panel has determined that he and an associate, Michael Mugford, contributed to an artificial price for Urban Barns Foods Inc. in 2009. Mr. Lim paid for tout sheets "completely devoid of reality" that predicted a $14 price for the company, the BCSC has found. (All figures are in U.S. dollars.)

The findings, released on Tuesday, June 6, come as part of a case in which the BCSC cited the men for a scheme to tout Urban Barns with claims about a new method to produce food. Enforcement staff claimed that the men boosted the stock to $1.27 while touting the company as having "solved the global food crisis." At the same time, offshore accounts sold $4.5-million worth of shares, the BCSC said.

The matter came before a three-member BCSC panel for a hearing in November, 2016. The scheme, as set out in the decision, revolved around a paid promotion campaign for Urban Barns that Mr. Lim financed in late 2009 and early 2010. Over a period of several weeks, he arranged payments totalling $1.2-million to a U.S. touting firm (only identified by the BCSC as "CFM") to produce several reports on the company.

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