A British Columbia Securities Commission (BCSC) panel has fined three men for engaging in market manipulation of shares in a company quoted on the U.S. Over-the-Counter Bulletin Board (OTCBB). The panel also permanently banned each of them from B.C.’s capital markets.

In January 2015, the panel found that between June 15 and July 6, 2009, Mark McLeary, Robert Hainey, and Jerry Williams manipulated the share price of Sungro Minerals Corp., a Nevada corporation that originally had its head office in Surrey, B.C. McLeary is a resident of North Vancouver. Hainey and Williams both reside in the U.S.

The panel found that Sungro’s publicly available shares were tightly controlled. McLeary knew this, and told Hainey, who told Williams. Williams is a stock picker who, with Hainey’s assistance, promoted Sungro shares on online message boards he moderated. McLeary directed the selling of Sungro seed shareholders’ shares that were purchased primarily by message board members.

In its sanctions decision, the panel highlighted the need for significant sanctions due to the severity of the misconduct: “Market manipulation by its very nature involves deceit. Because of this, we consider McLeary’s, Hainey’s or Williams’ continued participation in British Columbia’s capital markets would pose a significant ongoing risk to both investors and capital markets.”

The panel ordered that the respondents resign any positions held as a director or officer of an issuer or registrant (with limited exceptions), and permanently prohibited them from trading in, or purchasing, securities or exchange contracts. The panel also permanently banned them from becoming or acting as a director or officer of any issuer or registrant (with limited exceptions), becoming or acting as a registrant or promoter, engaging in investor relations activities, and acting in a management or consultative capacity in connection with the securities market.

The panel also ordered that McLeary pay to the BCSC the $91,308.56 obtained as a result of his misconduct, as well as an administrative penalty of $800,000. Both Hainey and Williams were each ordered to pay administrative penalties of $700,000.