A British Columbia Securities Commission (BCSC) panel has sanctioned Richmond’s William Raymond Malone for breaching an order prohibiting him from acting as a director and engaging in investor relations activities.
On Jan. 29, 2009, Malone entered into an agreement with the BCSC and, as part of the settlement, he was subject to an order prohibiting him from acting as a director or officer of any issuer and from engaging in investor relations activities for three years or the date he successfully completed a course of study concerning the duties and responsibilities of directors and officers.
In August of this year, the panel found that during the time period when the order was in effect, Malone breached the order by acting as a de facto director and/or officer of Lion King Resources Inc., a private B.C. company that was in the business of promoting and developing an iron ore property in the Atacama region of Chile.
The panel also found that Malone breached the order by conducting investor relations activities on behalf of Lion King when he solicited a B.C. resident to purchase securities of Lion King.
In its decision, the panel noted that Malone represents a significant risk to B.C.’s capital markets, stating “He was previously sanctioned for misconduct in our capital markets and, despite the order, simply carried on conduct in breach of the regulatory restrictions imposed on him.
“This raises questions about whether Malone will allow himself to be regulated.”
For his misconduct, the panel has ordered that Malone pay an administrative penalty of $60,000.
He must also resign any positions he holds as, and is prohibited from becoming or acting as, a director or officer of any issuer.
Malone is also banned from becoming or acting as a registrant or promoter, acting in a management or consultative capacity in connection with activities in the securities market and engaging in investor relations activities.
Malone’s bans are to remain in effect until Oct. 3, 2023 and until he pays his administrative penalty and successfully completes a course of study concerning the duties and responsibilities of directors and officers.
