Tuesday, March 5, 2019

CEO Brent Hugo Johnson penalized for false or misleading statements

The BCSC has imposed a $150,000 penalty on Brent Hugo Johnson, the president and chief executive officer of Mountainstar Gold Inc., for making false or misleading statements.

In addition to the penalty, Brent Hugo Johnson must resign any position as a director or officer of an issuer or registrant, and is permanently prohibited from taking any such role. Johnson also was permanently barred from trading in or purchasing securities or exchange contracts; relying on any exemptions of the Securities Act; becoming or acting as a registrant or promoter; acting in a management or consultative capacity in the securities market; or engaging in investor relations activities.
In imposing the sanctions, the panel noted that Johnson’s actions took place over three years, and cited as an aggravating factor his “negligent manner” of verifying the truthfulness of the company’s disclosure. The panel said it is unlikely that investors would have invested in Mountainstar if the company had accurately disclosed the facts surrounding the mining claim and related legal proceedings.