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by Mike Caswell
Ontario's Bobby Genovese has lost a motion to dismiss civil charges that he faces from the U.S. Securities and Exchange Commission over the manipulation of Liberty Silver Corp. in 2012. He had argued that the charges were unacceptably vague and fell short of making a case for securities fraud. Unfortunately for Mr. Genovese, a New York judge has determined that the allegations are sufficient for trial.
The ruling is part of a case in which the SEC cited Mr. Genovese for his sale of $17.5-million worth of Liberty Silver shares. (All figures are in U.S. dollars.) The regulator had accused him of touting the stock without disclosing his sale of millions of shares. Among other things, he arranged for promotional newsletters and enlisted the help of a New York brokerage to boost the company, the SEC said.
Mr. Genovese had asked that the judge drop the case, saying the SEC provided so few details that the matter was not worth taking to trial. In a motion to dismiss filed on Feb. 2, 2018, he contended that there was nothing to indicate that he misled anybody in selling his Liberty Silver shares. He claimed that he had repeatedly disclosed his interest in the company. Mr. Genovese also questioned if any rational investor would stay away from the stock simply because he intended to sell his shares for a profit.
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