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West Vancouver stock promoter gets lifetime ban

A West Vancouver resident who posed a “grave risk” to B.C.’s stock market has been banned for life by the B.C. Securities Commission. Gordon Brent Pierce, 59, was barred from B.C.
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A West Vancouver resident who posed a “grave risk” to B.C.’s stock market has been banned for life by the B.C. Securities Commission.

Gordon Brent Pierce, 59, was barred from B.C.’s capital markets recently, owing to a long history of dealings in both Canada and the United States.

“Pierce’s lack of honesty and transparency makes him a very grave risk to the investing public,” noted the BCSC panel’s decision.

Pierce, who once owned a $9.8-million mansion in Altamont, was first investigated by the BCSC in the early ’90s. After the investigation, Pierce agreed not to work as a director or officer for any publicly traded B.C. company for 15 years, beginning in 1993.

Pierce was later sanctioned by the U.S. Securities and Exchange Commission for securities related misconduct relating to his involvement with Lexington Resources, Inc., which was purportedly an oil and gas exploration company whose office was run out of another company’s office in Blaine, Wash., according to a 2014 U.S. Securities and Exchange Commission ruling.

Pierce promoted the company by sending out millions of spam emails and newsletters through his publishing company while Lexington issued a “flurry of optimistic press releases,” according to the SEC.

The company’s stock shot from $3 to $7.50 in four months in 2004. Pierce sold more than 121,000 shares through his personal account, profiting $2 million. Pierce also moved shares through two offshore companies, according to the SEC.

Lexington filed for bankruptcy in 2008 and the SEC ordered Pierce to pay a total of $11.4 million in remedial sanctions.

“Pierce lied under oath … (and) filed false and misleading documents with SEC staff,” according to the BCSC panel.

Pierce failed to report how many shares he owned and traded, according to the BCSC.

Pierce fought against the BCSC’s lifetime ban, requesting a prohibition of 15 to 18 years, which would give him a “faint hope” of returning to the market. He also asked the BCSC to consider his rehabilitation.

The BCSC panel denied the request.

“Rather than being deterred by our original sanctions, he simply shifted the field of his misconduct to the United States,” the BCSC panel stated. “This suggests that Pierce will not allow himself to be regulated.”

Pierce is fighting the SEC’s order, but he argued that should not be viewed as evidence of a lack of contrition. He also argued that no investors lost money as a result of his dealings.

The BCSC panel found Pierce cheated investors out of their chance to make an informed decision while he “reaped millions of dollars in profits by selling shares of stock without registration.”

Pierce profited $9.3 million but he argued that shouldn’t be considered as he has since disgorged some of that cash. The panel disagreed.

“Pierce’s misconduct in the U.S. did not arise as a result of careless or reckless behaviour, but rather misconduct carried out with intent.”

As a result of the panel’s ruling, Pierce must resign from any position as director or officer of a publicly traded company. He’s also barred from buying or trading any securities.