Two B.C. residents will remain on the hook to pay the B.C. Securities Commission $15.85 million for their stock market manipulation, the Court of Appeal of B.C. ruled June 21.
Central to the scheme was Kunekt Corporation, a relatively worthless public company that was touted as the “next Apple” in smartphone sales and “the proverbial ‘Holy Grail’ stock that is a legitimate game changer.” The marketing campaign enabled Kunekt to reach a market capitalization of almost $180 million in early 2011. Kunekt’s share price reached a high of $2.89 on Feb. 28, 2011 before plummeting to 0.03 at the end of the year.
The group was also issued permanent bans from the stock market. They are not to hold any position as a director or officer of an issuer, registrant or promoter; trade in or purchase securities or exchange contracts; rely on any exemptions of the Securities Act; act in a management or consultative capacity in the securities market; or engage in investor relations activities.
“The inferences the panel drew, that, in essence, each of Khorchidian, Deyrmenjian and EHT were aware of and facilitated the manipulation through their respective conduct, were supported by evidence,” wrote Willcock. Glacier Media attempted to reach the lawyers for Khorchidian and Deyrmenjian to see if they intend to repay the money or proceed to an appeal at the Supreme Court of Canada.