BC geologist charged with stock fraud
Posted December 20, 2010 10:18 am.
This article is more than 5 years old.
VANCOUVER (NEWS1130) – Fraud charges have been laid against a man whose Vancouver-based prospecting company earlier paid millions of dollars to settle shareholder lawsuits. John Paterson faces nine counts of fraud, stock fraud and publishing false statements.
The 60-year-old geologist founded and ran Southwestern Resources until he resigned in 2007 after the company said the drilling results from its Boka gold property in China were manipulated. Southwestern’s shares lost more than half their value in one day.
Mounties say Paterson made more than $11 million from the alleged scheme. In 2008 Paterson and his wife paid more than $15 million to settle lawsuits launched by shareholders. He also agreed to a lifetime ban from the securities market in BC.
The RCMP says the Integrated Market Enforcement Team arrested Paterson Saturday at his Salt Spring Island home.
