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by Mike Caswell

With the New York trial in the case of a Surrey boiler room getting closer, the U.S. Securities and Exchange Commission has asked the judge to help it obtain offshore banking records that it says will show where millions of dollars in proceeds from stock sales went. According to the regulator, the men behind the boiler room sent $7.5-million to a bank in Barbados in 2010. (All figures are in U.S. dollars.) The SEC says that the money was directly derived from selling two stocks the men were aggressively promoting.

The request is part of a case the SEC filed against alleged Canadian boiler room operator Benjamin Kirk and others for an $11-million pump-and-dump. The regulator claimed that the men ran boiler rooms in Surrey, B.C., and Calgary, Alta., that promoted two pink sheets companies, Tradeshow Marketing Company Ltd. and Pacific Blue Energy Corp. The men touted the companies with bogus claims about infomercials and solar power, according to the SEC. The stocks both went to over $1, while the defendants dumped millions of shares, the regulator claimed.

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