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by Mike Caswell

Former Vancouver brokers Taylor Housser and Glynn Fisher have received a strongly worded rebuke from a U.S. federal court judge after trying to charge a no-holds-barred European trip to the U.S. Securities and Exchange Commission. The judge has found that the pair attempted to have a "bacchanalian adventure" at the taxpayer's expense. Among other things, they stayed in a five-star London hotel and ran up a $1,000 alcohol bill while travelling for SEC depositions. (All figures are in U.S. dollars.)

The lambasting from the judge comes as part of the SEC's case against Panamanian brokerage Verdmont Capital SA. The SEC claims that Verdmont facilitated the sale of millions of improperly issued shares during questionable promotional campaigns. It and other offshore brokerages were part of a $75-million scheme, the SEC says.

Ahead of the trial, the SEC sought an interview (or deposition, in lawyer speak) with Mr. Housser and Mr. Fisher, the founders of Verdmont. The interview was problematic from the start, however. Both men refused to travel to the U.S. to facilitate the deposition. As a result, the SEC negotiated an arrangement in which the interview would take place in a neutral location. The parties chose London as that location. The SEC was to reimburse Mr. Housser and Mr. Fisher for their reasonable travel expenses.

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