Calgary trio..>> "Investment fraud is reprehensible and completely unacceptable capital-market misconduct; instances of fraud in the capital market severely threaten the public's confidence and sense of fairness in the whole of our capital market."
The case centres around a now-defunct company called Arbour Energy, which the ASC says illegally raised $45.5 million from investors. Arbour was led by Dennis Morice, who, according to the ASC decision, considered himself a "bit player" and "cog" in a scheme led by Milowe Brost and Gary Sorenson - two men charged in a separate high-profile alleged Ponzi scheme in 2009. Morice faces the smallest penalty of the three men - a $150,000 fine, an order to pay $50,000 to cover the cost of the investigation and hearing and a variety of bans. Arbour itself faces no financial penalties, but it's been barred from trading in and purchasing securities, among other things.
Sorenson has been fined $2 million and has been ordered to pay $70,000 in costs. Merendon must pay the $38.6 million it made from the fraud to the ASC and $70,000 in costs. In a separate case, Brost and Sorenson were arrested in 2009 for what police called "the largest Ponzi scheme" in Canadian history, bilking $400 million.
Blackhawk Mines Corp Big Bear Joint Venture: The work program will consist of extensive mapping of existing trenches, outcrop, oxidized zones and other previous workings including drill sites. Geochem sampling of large areas of the claim group along with sampling of all pits and trenches will be conforming with previous mapped and sampled areas which returned assays of greater than .01 oz/ton gold in the soil geochem. These areas of greater than .01 oz/ton gold covered a large area of the claim group and give rise to the anticipated total indicated contained ounces of gold which could range from 1 to 2 million ounces.
The two companies:
• Blackhawk Mines Corp. is a junior resource company that is active in the exploration and development of mineral resources. The Company is currently developing the Big Bear Claims located in San Bernardino County, California. The Company is currently reviewing additional acquisitions in North America, as well as potential joint venture opportunities in South America.
• Siga Resources Inc, founded in 2007, is based in South Lake Tahoe, California. Siga is a mineral resource exploration and development company. Siga's strategy targets properties that have the potential for near term production and early positive cash flow. Siga's general geographical interest is North and South America.