by Mike Caswell
John Bordynuik, the Ontario man facing civil fraud charges from the U.S. Securities and Exchange Commission for overstating the assets of his company by $9.99-million, has settled the case out of court. (All figures are in U.S. dollars.) He has accepted a five-year officer and director ban and has agreed to pay a $110,000 civil penalty. Mr. Bordynuik, 42, accepted the sanctions without admitting to any wrongdoing.
The penalties, which are contained in a consent agreement filed on Wednesday, Jan. 23, come just over a year after the SEC accused Mr. Bordynuik of overstating the assets of JBI Inc., a pink sheets listing for which he served as chief executive officer. The SEC claimed that he listed on the company's balance sheet a set of prepaid print and radio ads worth $9.99-million. The ads, which represented the company's only asset at the time, were later written down to nil for no stated reason. The writedown came after JBI had raised $8.4-million relying in part on the inflated assets, the SEC said.