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by Mike Caswell

The U.S. Securities and Exchange Commission has filed civil fraud charges against Vancouver's Barry Reagh and others for the 2019 pump-and-dump of a supposed cannabis listing on the OTC Markets. The SEC claims that Mr. Reagh, a Vancouver broker in the 1990s, was part of a group that carried out a paid promotion of Upper Street Marketing Inc., with the men realizing $1-million in proceeds from the scheme. (All figures are in U.S. dollars.) The SEC is seeking a permanent ban, among other penalties, for Mr. Reagh.

The allegations are contained in a civil complaint that the SEC released on Monday, Dec. 5. The complaint identifies Mr. Reagh, 59, as a resident of Surrey, B.C., and Scottsdale, Ariz. The SEC also identifies one of his relatives, D.R., as a "relevant individual" (and not a defendant), claiming that the relative held shares on Mr. Reagh's behalf.

The scheme, as set out by the SEC, began in 2018, when one of Mr. Reagh's co-accused, a Missouri resident named Joseph Earle, was looking to take a cannabis company public. To that end, he came into contact with Mr. Reagh and others who controlled Upper Street Marketing, the SEC claims. The men struck an agreement on Oct. 1, 2018, in which they would take Mr. Earle's company public and, according to the SEC, would use it as the vehicle for a pump-and-dump.

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