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by Mike Caswell

The U.S. Securities and Exchange Commission has secured a $7.2-million disgorgement order against Newport Capital Corp. and Jenirob Company Ltd., two private offshore companies controlled by Vancouver promoter Gordon Brent Pierce. (All figures are in U.S. dollars.) The penalty stems from the Lexington Resources Inc. promotion, in which the SEC claimed that Mr. Pierce and others sold millions of shares after paying for spam and newsletters to tout the stock.

The order comes two years after the SEC levied a separate $2.04-million administrative penalty against Mr. Pierce for the promotion. It claimed that he and others sold $13-million worth of improperly issued Lexington shares. In addition to the monetary penalties, he and an associate, Grant Atkins, were both barred from future violations.

Newport and Jenirob penalties

The current penalty is contained in a administrative order handed down on May 11, 2011, by Judge Cameron Elliot. It is a decision by default, as neither Newport or Jenirob responded to the case.

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