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by Mike Caswell

Texas lawyer William Stack, fined and banned by the U.S. Securities and Exchange Commission for his part in an OTC Markets scheme that he said was run by Vancouver's William Scott Marshall, has won an appeal. The SEC claimed that Mr. Stack was the president of a company that raised $5-million as it made misleading claims about a $273-million mine. (All figures are in U.S. dollars.) The SEC won a ban and a court order directing Mr. Stack to pay $666,220, but three appeal judges have reversed that decision.

The ruling comes as part of a case in which the SEC charged Mr. Stack for his part in the promotion of Preston Royalty Corp., a company that Mr. Marshall was promoting in 2015 and 2016. According to the SEC, Mr. Stack accepted a job as the company's president because he was "broke and needed the money." He then approved false and misleading news releases, omitting Mr. Marshall's role with the company entirely, among other things, the SEC claimed.

The case looked to be all but concluded on March 8, 2023, when a federal judge in Texas ordered Mr. Stack to pay $666,220, barred him from serving as an officer or director for five years, and banned him from penny stocks. There was no trial, as Mr. Stack had accepted liability for the scheme, leaving the matter of his penalties for the judge to determine. In doing so, he did not admit to any wrongdoing.

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