B.C. man and his two companies admit to role in abusive scheme

VANCOUVER, BC, March 4, 2024 /CNW/ – A B.C. man and two companies he controlled have jointly paid $100,000 to the B.C. Securities Commission (BCSC) and are suspended from participating in the investment market for their role in a scheme that was abusive to the capital market.

Anthony Kevin Jackson, BridgeMark Financial Corp. and Jackson & Company Professional Corp. have admitted in a settlement agreement to conduct that was part of a scheme involving private placements and prepaid consulting fees for little or no consulting work.

Jackson’s companies, and other consultants and their affiliated companies entered into consulting agreements with various issuers listed on the Canadian Securities Exchange. BridgeMark and other consultants used their role as consultants to purchase, through private placements, tradeable shares of the issuers.

As part of the scheme, nine issuers announced gross proceeds of $50.9 million from the private placements in 2018. Most of those funds were then given to the consultants as prepaid consulting fees, with the issuers retaining only $7.9 million. The consultants, in most instances, sold their shares after purchasing them, at prices that were generally below the private placement price.

BridgeMark purchased $2 million worth of units in a private placement by one issuer, and sold the shares before or shortly after receiving them. Jackson’s companies also received $3.4 million in consulting fees.

Jackson met with some of the issuers to explain the consultant exemption that the issuers relied on to make the private placement shares freely tradeable, and he facilitated the delivery of paperwork, including subscription agreements, consulting contracts and private placement cheques for some of the issuers.

Jackson and his companies agreed that the conduct acknowledged in the agreement engaged the Commission’s public interest jurisdiction and that it was necessary to make orders against them.

As part of the agreement, Jackson is prohibited for eight years from becoming or acting as a director or officer of an issuer or registrant (unless he owns all of the issued and outstanding shares of the issuer). In addition, Jackson, BridgeMark and Jackson & Company are prohibited from:

Purchasing securities using the consultant exemption for eight yearsAdvising or otherwise acting in a management or consultative capacity in the investment market and from engaging in certain promotional activities in the investment market, with certain limited exceptions, for five yearsTrading in or purchasing securities or derivatives, with certain exceptions and conditions, for three years, andBecoming or acting as a registrant or promoter for two years.

Jackson and the companies also consent to an order made by any Canadian securities regulator that contains the BCSC’s order.

About the B.C. Securities Commission (www.bcsc.bc.ca)

The B.C. Securities Commission is the independent provincial government agency responsible for regulating capital markets in British Columbia through the administration of the Securities Act. Our mission is to protect and promote the public interest by fostering:

A securities market that is fair and warrants public confidenceA dynamic and competitive securities industry that provides investment opportunities and access to capital.

Learn how to protect yourself and become a more informed investor at www.investright.org

SOURCE British Columbia Securities Commission