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by Mike Caswell

John Bordynuik, the Ontario man facing civil charges from the U.S. Securities and Exchange Commission for overstating the assets of his pink sheets company by $9.99-million, denies that he did anything wrong. (All figures are in U.S. dollars.) He says that the $9.99-million was a credit for print and radio ads the company had bought, and he was told that the credit was worth that much.

The SEC claims that the overstatement occurred in 2009, in the third quarter and annual financials for JBI Inc., a pink sheets listing based in Ontario. The company's only substantial asset at the time was a set of prepaid print and radio ads JBI had acquired for one million shares. Despite recommendations of his accountant to value the ads conservatively, Mr. Bordynuik had them recorded on the company's balance sheet at a value of $9.99-million. The company later wrote the media credit down to nil without giving any substantial reason. The writedown came after the company had raised $8.4-million relying in part on the inflated assets, the SEC said.

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