March 15, 2005
OSC Alleges Manipulative Trading in Shares of Visa Gold Explorations Inc.
Toronto � The Ontario Securities Commission (OSC) today alleged trading violations by six individuals in shares of Visa Gold Explorations Inc. (Visa Gold). The OSC proceeding followed a referral by the Royal Canadian Mounted Police (RCMP). The OSC issued a Notice of Hearing and Statement of Allegations in respect of Robert Zuk, Ivan Djordjevic, Matthew Coleman, Dane Walton, Derek Reid and Daniel Danzig.
OSC staff allege that in the period between August 1999 and November 2001, Robert Zuk, through brokerage accounts over which he held or exercised trading authority, traded in the common shares of Visa Gold Explorations Inc. (Visa Gold) in a manner that was designed to create - and did create - a misleading appearance as to the value of, and market activity in, Visa Gold shares.
The OSC alleges that Zuk used manipulative trading techniques, including wash trading (which involves no change in beneficial ownership of the shares), match trading (which involves entering an order to buy or sell shares with knowledge that an offsetting order of substantially the same size and price has been, or will be entered), and high close trading (trades at or near the end of the day that result in a higher closing price for the shares for a particular day). It is further alleged that the majority of these trades occurred at prices higher than the preceding reported trade.
OSC staff allege that Derek Reid, Matthew Coleman, Ivan Djordjevic and Daniel Danzig, who were registered representatives, were involved as brokers in certain of those wash, match or high close trades. In addition, Derek Reid and Dane Walton are alleged to have conducted trading for their respective brokerage firms’ inventory accounts on a prearranged basis with Robert Zuk.
Staff allege that the trading in question created a misleading appearance as to the volume of trading in Visa Gold shares and as to the market price for the shares and was therefore contrary to Ontario securities law and the public interest.
The set date appearance for the OSC respondents is scheduled for April 15, 2005 at 10:00 a.m. in the main hearing room at the Commission’s offices, located on the 17th floor, 20 Queen Street West, Toronto.