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Regulator sanctions Richvale Resource and President

Stockhouse Editorial
0 Comments| November 22, 2012


The Ontario Securities Commission has announced sanctions against Richvale Resources Corp. and its President and co-founder Pasquale Schiavone.

Richvale and Schiavone have been permanently banned from trading in securities for their role in bilking 27 Canadian investors out of $753,000.

In releasing the reasons for its decision, an OSC panel observed that “the respondents cannot be trusted to participate in capital markets.’’

In keeping with that decision, the panel ordered Schiavone to pay an administrative penalty of $300,000. Schiavone and Richvale were also ordered to jointly pay a further $387,666 in disgorgement costs.

The OSC panel had previously found that of the $753,000 raised from investors, Richvale used only 6 per cent of that amount for mining claims.

The remainder of the Richvale investor funds went to cash withdrawals, sales commissions, payments to directors, officers or employees, and undocumented loans to friends of employees.

According to the OSC panel, "Richvale had no underlying legitimate business."

The remaining respondents in this matter, who settled with the Commission on October 14, 2011, were ordered to disgorge the remainder of the funds obtained as a result of the fraud.


Tags: COMMISSION DISGORGEMENT CANADIAN INVESTORS ANNOUNCED SANCTIONS

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