This item is part of Stockwatch's value added news feed and is only available to Stockwatch subscribers.

Here is a sample of this item:

by Mike Caswell

Verdmont Capital SA, the Vancouver-linked Panamanian brokerage charged as part of a $75-million case in New York, has gone out of business. (All figures are in U.S. dollars.) The firm hired a liquidator on Jan. 11, 2016, and dismissed 40 employees. It says its business drastically declined after the U.S. Securities and Exchange Commission accused it of selling millions of improperly issued shares on the U.S. markets.

The liquidation comes nearly one year after the SEC filed civil charges against Verdmont and a group of offshore brokerages. The regulator claimed that Verdmont and its co-defendants sold $75-million worth of shares in four Canadian-linked companies during questionable promotions in 2013. The selling occurred as aggressive campaigns were under way to tout the companies as active oil and gas or mining issuers. Of the companies, three had links to Surrey, B.C., and the other had a Montreal man as its president.

In filing for liquidation, Verdmont blames the SEC for its predicament. In a letter to the judge dated Jan. 15, 2016, the firm claims that the SEC obtained an improper asset freeze order and published a false account of the case against it. That false account included claiming that Verdmont and its co-defendants reaped over $75-million in illegal gains, when Verdmont in fact realized just $239,955, the firm says. As a direct result of the asset freeze and the announcement, Verdmont suffered what it calls "waves of customer migration."

The remainder is available to Stockwatch subscribers.
Sign-up for a FREE 30-day Stockwatch subscription and SEE NO ADS