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by Mike Caswell

The U.S. Securities and Exchange Commission says banned Vancouver lawyer John Briner is ignoring a case it filed against him for a fraudulent shell factory scheme. The regulator served him with an order instituting proceedings on Jan. 21, 2015, just days after it began the case, but Mr. Briner has not filed any response and failed to appear at a status conference on Feb. 10. A judge has given him until March 2 to explain his absence.

The allegations against Mr. Briner stem from 20 purported mining companies he set up in 2011 and 2012 using sham property deals and nominee officers. According to the SEC, he used the property deals to avoid the regulatory requirements that normally attach to "blank check" companies. The regulator claims that he hid his role with the companies after receiving prior sanctions in a pump-and-dump case.

Mr. Briner had until Feb. 13, 2015, to respond to the charges, but according to an administrative order dated Feb. 18, 2015, he failed to do so. The order gives him until March 2 to show why the case should not be determined against him. After that date the judge could impose whatever sanctions the SEC requests. Among other things, the regulator is seeking a penny stock ban and an officer and director ban. It is also seeking fines in amounts it has not yet specified.

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