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by Mike Caswell

The U.S. Securities and Exchange Commission has won a 10-year ban against Vancouver's Dan Clozza for manipulating Forum National Investments Ltd. in 2012. A federal judge in California has deemed the accusations against him to be serious enough to warrant the sanction. Among other things, the SEC said that he repeatedly issued false or misleading news releases as the stock went to a $1.90 high. (All figures are in U.S. dollars.)

The penalties are contained in an order entered on Friday, Nov. 18, by Judge John Kronstadt. The order bars Mr. Clozza, 56, from serving as an officer or director of a public company and from participating in penny stock offerings for a period of 10 years. In imposing the ban, the judge said that the sanction would have been permanent were it not for Mr. Clozza's lack of a prior regulatory history.

The ruling represents a partial victory for the SEC, which had sought to permanently ban Mr. Clozza. As Forum's chief executive officer, he caused the company to repeatedly issue false news releases, the regulator said. Among other things, the news releases misled the public about the source of money for an on-line promotional campaign and Forum's knowledge of an investigation by the B.C. Securities Commission, the SEC claimed. Of particular concern, according to the SEC, was that Mr. Clozza continued to issue misleading news even after he knew about the BCSC's investigation. The SEC set out its position in a motion filed on July 19, 2016.

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