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BCSC looks at making private placees public

2010-09-09 22:01 ET - Street Wire

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by Mike Caswell

Hidden buyers in private placements may be visible to the public for the first time in seven years, if a plan by the B.C. Securities Commission goes ahead. The regulator announced on Thursday that it would be seeking public comment on its proposed disclosure procedure whereby the names of all placees would be publicly available.

The proposal marks a reversal of the BCSC's policy of hiding the names of individual private placement subscribers. Today, even a freedom of information request will only receive the names of corporate placees, not individuals. In April, 2003, then-chairman Doug Hyndman ordered the commission to stop making the data available, citing the privacy of investors. Since then, the only names released have been those of insiders and brokerage employees (and corporate placees to freedom of information requests). Mr. Hyndman's change was a significant loss of information for the public, as it stripped investors of the ability to discover who was backing many "dicey deals," says Gordon Robertson, a market follower.

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Cue a halcrow post in 3..2..1.. ;)

Good news for investors -- the BCSC should disclose the info. and protect investors.

p.s. where is Lee Webb??

Posted by goLEEgo at 2010-09-09 22:26

pp investors are preferred shareholders inasmuch as they normally get a discount to the market and a warrant and usually at a convenient time of the structuring of a deal

as such, they should be under the same rules as insiders and the public has a right to know this information to see who is getting the freebies while we are getting screwed

we should also be able to determine when these same people are selling their shares so that we can take advantage of the knowledge when the promoters are telling them to get off their stock so they can buy the next PP

Posted by catbird at 2010-09-09 22:34

'Cockroach' because of the insects' dislike of light," he says. "If those cockroaches scurry off to other jurisdictions that will keep their presence a secret, that is a win for B.C."

Most already have, the Pink Sheets and OTCBB has long been the Cockroach hotel of choice for Howe Street parasites. The BCSC fails to comprehend they are irrelevant.

Posted by BC sucks at 2010-09-09 22:48

Yes!! Time to stop the protection of thieves and finally, some consideration for the supporting investors. Am so glad to hear this and hope they are mighty diligent in their transparency. Everything should be open to the public - after all, it is the public who provide the funds to keep half these 'dog' stocks alive!!!

Posted by Nicola Dime at 2010-09-09 23:08

First answer to goLEEgo, Lee Webb was not a real person merely a nom de plume. He did not exist. It is about time the BCSC stopped protecting those that play fast and loose with the rules.

Posted by Duncan Ferguson at 2010-09-10 06:05

For those who are complaining about Hidden Names on private placements; then the BC SC should open the door and allow the public investors subscribe openly to any acclaimed Red Hot Offer at the allowable discount to market and have everyone’s name published including the stock buying complainers, and you should be at par then with the alleged thieves if there are any. Complainers who should know better that over 90% of stocks never pay a dividend and are venture risk investments; it’s buy on the low and sell on a high, its only your own greed or lack of stock investment knowledge that makes you become a complainer and cry foul when you lose money. If you are looking for a guarantee investment keep your money in your pocket or just buy a GIC at the bank or a government bond. The only reason you play the stock market is for your own greed to make more money but the risks come with it. If there is no promotion on a stock you make ZERO return, however, as soon as the stocks rise in price, as sure as God made green apples you sell it off as quickly as bees to honey. Without a buying market created from individual’s thoughts about news release information provided by a company, you are dead in the water. There is not one complainer investor that maybe; not even unknowingly profited on a stock from a Big Bad Wolf involved in the same stock or complains if they did know. Stock Investing RESPONSIBILTY starts at the top and that is with YOU ONLY; not the Big Bad Wolf, Directors, the Company, or Other Shareholders. If you discover or smell a rat report it to the appropriate enforcement authorities, or alternatively you can clip your coupons and wait for your Guaranteed Canada Pension Cheque. By the way it will be discounted there too, as deem income along with your other wealth you make in the stock markets. Complainers of fairness don’t forget, to have your buys and sells published with your name for public disclosure. Now you will all know who has a leg up on whom. Good Luck

Posted by Well Advised at 2010-09-10 07:16

With wash trading, naked short selling, jitneying, false news releases, creative accounting, churning by brokers, etc. practiced all the time, complainers are tired of giving their 'cheese to so many insider rats' and have something valid to complain about. Let the transparency begin.

Posted by Susie Q at 2010-09-10 09:54

Only idiots buy penny stocks, 99% of the time its just worthless paper being dumped by greasy insiders looking for easy money.

Posted by scumbags all at 2010-09-10 09:57

What are he guys at stockwatch smoking these days? There are rarely any off-shore placees any more. The deals being done on the venture exchange have improved in quality significantly and the real crap just doesnt get funded any more. Discovering who is backing "dicey" deals? Unlikely. More like find out what institutions are backing real deals. Baines and Stockwatch are still living in the 80's

Posted by years gone by at 2010-09-10 10:26

All the real shitty operators and deals have moved to the pinks and the BB. People like catbird and Susie Q need to talk to their brokers about getting involved in private placements. Most are done using the accredited investor exemption and OM's are almost never used any more so most people cant play anyway. Whiners like these 2 wouldnt take the hold period anyway, they just like to complain. Probably they have played, had an opportunity to get out at a profit but their greed got the better of them and they rode the stock into the ground. If your broker is churning them complain to the firm. I always love it when people complain about their own stupidity

Posted by Get real at 2010-09-10 10:33

This will have a devastating effect on the privacy of the average private placement purchaser.

Now every stock promoter on the planet is going to know your name, address, and phone number.


Posted by Reality Check at 2010-09-10 10:59

After successfully participating in building a TSX-V company and coming from outside the 'mining' industry I often have to tell people that investing in juniors in Vancouver is like going through the looking glass into Wonderland or the Twilight Zone. That feeling hasn't changed as I see the Usual Suspects out there doing the same thing year after year and making a killing off it while guys like me struggle to build actual companies of value in the 'Real world'.

Give me the 1/2 of the BCSC budget and I am sure I could change attitiudes with a body that is a non-profit consultant giving ethical and moral guidance to company builders to prevent them doing things the wrong way. I am convinced that none of these guys even know what the rules are. Instead of enforcement, they should have guidance and should be way more proactive and have face to face meetings with the usual suspects so that these turkey's know they are being watched and conduct themselves more ethically.

It pains me that smart people aren't willing to take a call from me will fund crappy deals from guys who are nothing but pump and dump specialists. That message should also be delivered to the wealthy in this town and in Toronto.

After my next project is over I am going to focus on preventative enforcement issues. I have had success with this approach in other fields and I am positive a

Posted by company builder at 2010-09-10 11:09

This will hurt the crappy TSX-V even more. Companies will have a hard time raising money, they will be forced to list on the Pinks or OTCBB. Investors don't want their names published for all bandits and con artists to see.

Posted by The right to privacy at 2010-09-10 11:23

Oh, Mr. Get Real...I'm just standing up for the vulnerable, uninformed sheep who get so blinded by the manipulation of the financial community that they can't think straight...SHORT SELLING is the best way for outsisders to make money, I do it all the time and advise anyone I know to do it also. No interest in supporting startup companies. Like everyone I'm only interesting in making a profit and SHORTING is my love....cheers!

Posted by Susie Q at 2010-09-10 12:08

This is good news> Now lets get rid of anonynmous

Posted by Hunchback at 2010-09-10 12:46

Great news. Now lets get rid of anonymnous

Posted by Hunchback at 2010-09-10 12:48

Hunchback: what do you mean by 'anonymous'? Nominee accounts?

Posted by Luke Out at 2010-09-10 12:49

@ reality check.

Better get a new log-in name. Addresses and phone numbers? Give me a break. Not even with an industrial-grade Ouija board would anyone be able to come with an address or phone number when the placee is listed as Hans Schmidt, Switzerland.

And why would anyone bother to try to get addresses and phone numbers for pp placees? These placees aren't likely to buy pigs in pokes from cold-calling, boilerroom chimps; they want a hefty return on their money (which likely most get, time after time).

Posted by Halcrow at 2010-09-10 13:30

msot of the companies are lucky to get any investors--so you take down a pp at ten and it goes to 15 big deal msot jcp and pp do not work out or go below issue prices-----look at the stats---then you buy an underwritting and it opens lower---grown up stop complaining this is for action and it beats a casino-------anyone here older the orgianl general motors of palm srings real estate nope and who protected those investors-----happy new year to all---saul seeker of truth

Posted by saul seeker of truth at 2010-09-10 13:41

@ Halcrow

are you nuts? why would promoters want the names of placee's who have bought stock based on a phone call and a few news releases? I wonder. If they have made money then they are more likely to keep buying into other financing's. I think a list of everybody who bought a private placement in the past year would be something of value, especially when the minimum investment is usually 5-10k

This whole notion that the guys offered privat placements are all insiders is false. Most private placement buyers are worked from a list of regular people, and most arent accredited. Nobody follows up on that and nobody cares to.

Posted by bob at 2010-09-10 15:09

Listen to all the rocket scientist that claim buying penny stocks in for "idiots" Well call me an idiot, but I buy them all the time and do very well. Check out the "white gold district" BBR, ATC, etc........all great stocks on great properties and I bought em all based on the names of the people sitting in management. Oh sure you don't win everyone, but if you buy could management, you seldom lose if at all.

Posted by shoes at 2010-09-10 15:29

Susie Q for every short sell...........there was money already made long. Or do you just short stocks that come on the board at 10.00 +

Posted by shoes at 2010-09-10 15:32

Halcrow = David Baines so obviously the boiler room boys have not peppered him with touts. Does he honestly believe these parasites would resist using a $100,000+ PP list? LOL

Posted by Cold Calls at 2010-09-10 15:36

Take a look at the amended SEC versus Gordon Brent Pierce et al case (the Lexington Resources one).

Yes, nominees are used all the time. More transparency will help the SEC catch the Vancouver p&d crowd much faster.

Posted by More Transparency Will Help at 2010-09-10 16:24

The BCSC is dreaming if they think the Vancouver OTC crowd is going to report anything to them for deals run outside of BC, that's why they moved from the TSX-V in the first place. The pumper boys laugh at the BCSC while they fill up their bank accounts. The TSX-V is dying, nobody gives a crap about it anymore except for a small number of old school investors from last century. Mexican nominees are untouchable, I'm telling you! Without scammers there would be 98% less deals trading, that's why the SEC tolerates it, they only go after the worst of the worst while leaving small time scammers to create a market for the entire industry to leach off of. The BCSC will never understand this, they still don't have a clue why the VSE failed miserably. Scammers will always find a way to do business and right now its on the OTC and the pinks. The TSX-V can go to hell!

Posted by Pump and Dump while staying ahead of the SEC at 2010-09-10 16:41

Good...it allows us poor people to see the rich...and greedy position...so that we can follow the model..

Posted by armchairanalyst at 2010-09-10 17:14

Shoes....I don't have a set rule-of-thumb that I follow....warrants are great as they near their expiry date. I watch volume, time of month (margin calls), short positions, who is management, advance-decline stats, news releases, charts. Yes, lotsa money made on the long side but far easier for me to catch-a-fall than to catch-a-rising stock.

Posted by Susie Q at 2010-09-10 18:42

How do you know Lee Webb was a pen name? I did talk to him on the phone once, year ago. 'He' did seem to exist.

Posted by goLEEgo at 2010-09-10 19:53

They locked me out of Stockhouse!!!! Its mine....mine....all mine!!!! I want it back!!!!!!!

Posted by Marcus New at 2010-09-10 20:22

This VSE/TSX Exchange has been around for AGES,May i know who gets the benefits?Not investors for they are always the victims. Who benefited? salary people BCSC ,exchange members,accountants , lawyers and few lucky promoters Most losers are so call dreamers and believers..with taxes so high in canada ,i wonder how and why this exchange should ever EXIST. BILLION and BILLIONS were lost over the years on Howe street and who benefited ?This a a Big Canadian Casino created by the BC Government . The people should be fishermen and farmers in the west coast ,then housing prices and immigrants will not come and GET Cheated by the government.SHUT IT DOWN VERY MAD

Posted by very mad past investor at 2010-09-11 14:45

It is good that a regulating body tries to improve. In the end, LOOK, the "the game" will continue. I do feel bad for the small guy. I'm a small guy and I'm the chair of a board of a company with $30M in assets. The big money will always find a way in or out in this game, or anywhere else. SOME of the CROOKS are at the top. RULES!!! - what rules??? Remember what the Liberals(Jean Chretien) did to a very rich Canadian family trust? Some 750,000,000.00 in taxes were not collected - blessed by the big guys to leave - when they moved the trust off shore. Conservatives(Brian Mulroney) and the contracts for the AIR DEFENSE between Manitoba and Quebec. How many more out there??? if a small guy fails to pay his taxes - even if for a need - well, well! FAIRNESS is very a relative term in all areas.

Posted by 5oceans at 2010-09-11 17:23

The pinks are a secondary exchange only. The OTCBB is being wound down by Finra. Are you Canadians that out to lunch? Do some work.

Posted by crapola at 2010-09-12 17:57

You are the one out to lunch if you think the US securities industry won't provide a market for penny stock fraudsters!!!! If the OTC was ever shut down something like the proposed BBX would pop up to take its place. Penny stock fraud won't disappear any time soon.

Posted by Market Makers are scumbags at 2010-09-13 00:10

It is about time. Every deal is run by a stock manipulator that hides behind this rule. It has been the biggest thing that has taken shareholders money from them. The stock market is all about transparency and that is what we need. This is the best thing I could ever think of and something that will bring me back into the market.

Look at Langley promoters James Hinton and Lonnie hayworth is a great start. Both are promoters of John Briner shells Both are on pump involved with pump and dump deals TSHO and HIMR.

Posted by Fantastic News at 2010-09-13 18:10

John Briner and his fellow criminals will never disclose to the BCSC their control positions in 50 or so scams they operate. The BCSC is a joke, local stock crooks laugh at them, they do their stealing outside of BC! Does the BCSC honestly believe anyone is going to report pink sheet and OTC dirty secrets to them? yah right! lol

Posted by Meaningless news at 2010-09-13 20:32

How are the brokers going to get the secret commissions ? I have been in the Vancouver market since 1980 and GP,Yorkton securities, wolverton all took money from promoters. Secret offshore accounts in the brother in laws name in another brokerage house. Was about as complicated as a vancouver broker would get. The question is how does that paper come to be and (took the name out here to protect the west vancouver living PO ) has done millions and millions of dollars and no mine. No one seems to care, 20 years and no one cared. Now with this new effort. This will change. Good job who ever did this. Long live the VSE

Posted by broker at 2010-09-14 12:14

Simple solution, move all of your business outside of BC, the BCSC can go to hell!

Posted by Mail Drop at 2010-09-14 19:36

Great news. I hope all who comment here will also write to the BCSC. More importantly let's get rid of Broker 1 aka Anonymous. What a scam that is. We usually know who buys pp but not when they dump. To top it off, the SEC in the US think they have transparency when inter-listed TSE - NYSE stocks can trade as Anonymous in Canada. Finally, there are 5 exchanges to trade on in canada and the volume is not consolidated whereas in the US it is. So if I want the whole picture I need at least TMX and Alpha volume and the buyers and sellers.

Posted by John Shaw at 2010-09-16 07:05

Anonymous buying and selling on this market should also be banned out right. I have brokers who do anonymous trades for one reason only and that is to deceive the people that they get to participate in the PP, only because they short the stock a short time before it becomes free trading as they can sell the stock cheaper than the public because of the 6% to 10% finders fee (edge) they get at the front end. Brokers and their house also would not want the company that did the PP to find out they are the ones flooding market with their cheaper paper before it comes free trading or the might not let them participate in the next PP. The brokers rank tied or below used car salesmen and trailer park trash on the ethical scale.

Posted by David Brains at 2010-09-16 11:06

Nobody will participate in PP's the BCSC has jurisdiction over, end of story.

Posted by path of least resistance at 2010-09-16 14:09

Yes I agree that there shouldn't be any hidden names! We have to get more and more transparent to get to the ultimate goal of greater confidence in our markets!! Good stuff if it does in fact change!

Posted by tony at 2010-09-16 17:05

The VSE shut down, the BCSC no longer serves any purpose, its obsolete.

Posted by Marcus at 2010-09-17 11:46

What next, a BCSC tax on trading (any trades made from within BC anywhere in the world)?

Posted by 35% parking tax at 2010-09-17 23:50

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