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by Mike Caswell

The U.S. Securities and Exchange Commission has permanently banned Warren Davis and his now-defunct Bahamian brokerage, Gibraltar Global Securities Inc., which was once associated with a boiler room operation run from Surrey and Calgary. The SEC said that Gibraltar ran an offshore business that specialized in helping customers trade anonymously in penny stocks. Over four years, it sold $116-million worth of shares on behalf of those customers, according to the SEC. (All figures are in U.S. dollars.)

The penalties are contained in an administrative order that the SEC handed down on Monday, Sept. 30. The order permanently bars Mr. Davis and Gibraltar from penny stocks, with the ban including any promotional or consulting activity as well as trading. The decision is one handed down by default, as Gibraltar and Mr. Davis ignored the case.

The ban is a footnote to the case against Gibraltar, and is one of multiple proceedings the SEC filed against the firm. Among the other cases was one in which the SEC pursued a group that included Canadian brothers John and Benjamin Kirk. The SEC claimed that the group boosted a pair of companies listed on the pink sheets, Pacific Blue Energy Corp. and Tradeshow Marketing Ltd., with misleading claims about solar power and infomercials. Both stocks went to well over $1 before falling under a penny.

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