This item is part of Stockwatch's value added news feed and is only available to Stockwatch subscribers.

Here is a sample of this item:

by Mike Caswell

The U.S. Securities and Exchange Commission has asked a federal judge in Colorado to impose a permanent injunction and up to $203,174 in penalties on Vancouver-linked securities lawyer Diane Dalmy for a series of fraudulent legal opinion letters. (All figures are in U.S. dollars.) The SEC says that Ms. Dalmy, a former ethics lecturer, circumvented an administrative ban by using another lawyer. Given her willingness to work around her prior ban, an injunction from a federal judge is necessary to prevent future violations, according to the SEC.

The request from the SEC comes as part of a case that the regulator has been pursuing against Ms. Dalmy for opinion letters she issued in 2015 and 2016. The letters allowed others to obtain tradable shares in several companies. The SEC claims that Ms. Dalmy used the name of a retired divorce lawyer to circumvent the SEC's administrative ban and a prohibition that the pink sheets had enacted against her.

(Ms. Dalmy received the SEC ban for her part in a scheme run by since-disbarred Vancouver securities lawyer John Briner. The SEC said that she wrote opinion letters in support of an effort by Mr. Briner at listing 20 purported mining companies. Mr. Briner had attempted to create the companies as shells by using sham property deals and nominee officers. On Sept. 18, 2015, Ms. Dalmy received a $680,000 fine for her part in Mr. Briner's scheme. In addition, the SEC imposed an order that barred her from practising before the commission, meaning that she could no longer write the opinion letters.)

The remainder is available to Stockwatch subscribers.
Sign-up for a FREE 30-day Stockwatch subscription and SEE NO ADS