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

Three men ordered to pay $16.5-million by the B.C. Securities Commission for the manipulation of Kunekt Corp. have lost an appeal. The appeal court has upheld the BCSC's finding that the men were behind a 2011 scheme with Kunekt, a supposed smartphone developer. Among other things, paid tout sheets called the stock "the next Apple" as accounts linked to the men sold millions of shares.

The loss for the men is contained in a judgment handed down by the Court of Appeal for British Columbia on Friday, June 21. The decision stems from the manipulation of Kunekt, a stock that went to $2.89 amidst misleading claims about its smartphone business. The case targeted three men: Raffi Khorchidian, Garo Aram Deyrmenjian and David Craven. The BCSC found that Mr. Khorchidian and Mr. Deyrmenjian, both of B.C., each realized over $7-million in gains from selling the stock. Mr. Craven, a Swiss resident, handled payments to stock touts.

The Kunekt scheme, as set out by the BCSC, took place after Mr. Khorchidian and Mr. Deyrmenjian acquired a large block of free-trading shares. A subsequent touting campaign, as set out by the BCSC, took place in late 2010 and early 2011. The men touted Kunekt as a producer of smartphones and tablets, with products called the "Kruze" and the "Krush." The company's products, as described in the tout sheets, were "not only comparable to Apple's iPhone and iPad respectively, but by some standards are far superior."

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