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by Mike Caswell

The U.S. Securities and Exchange Commission has banned and fined Vancouver-area accountant George Drazenovic for his part in pump-and-dump schemes on the U.S. markets from 2010 to 2019. Among those schemes was the promotion of Virtus Oil & Gas Corp., which supposedly had a "U.S. Super-Field estimated to hold 3 TRILLION barrels of oil -- or nearly DOUBLE the world's proven oil reserves." That scheme alone generated $23.1-million in illicit gains, according to the SEC. (All figures are in U.S. dollars.)

The penalties for Mr. Drazenovic, released by the SEC Friday, Dec. 19, include a permanent ban from penny stocks and a three-year officer and director ban. Mr. Drazenovic must also pay $619,096, comprising disgorgement of $331,595 in gains, plus interest, and a $236,451 fine. The penalties must still be approved by the judge. They represent a negotiated settlement, in which Mr. Drazenovic has not admitted any wrongdoing.

In charging Mr. Drazenovic, the SEC identified him as an associate of Ron Bauer, a Vancouverite who received 20 months in a U.S. prison for the same scheme. (Unlike Mr. Bauer, the charges against Mr. Drazenovic are civil and carry no possibility of jail time.) Federal prosecutors said that Mr. Bauer participated in or directed nearly every aspect of the pump-and-dumps -- creating shells, running promotional campaigns and carrying out the trading strategy. There was no trial for Mr. Bauer, as he pleaded guilty and agreed to a voluntary extradition.

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