Canadian Regulatory Failure

If you didn't believe it before, believe it now. It really is Investor Beware!.

It took ten years for the OSC to investigate and arrive at a court decision. Felderhof, former Bre-X chief geologist and Vice Chairman, found not guilty on all charges.

The scam of the century. Salted core samples. Outright fraud. Yet no one has been jailed.

It seems ridiculous that the chief geologist would not be aware that the gold wasn't there. How could he support the outlandish claims of resources? Was it alluvial gold (from a riverbed) that was used to salt these core samples? A layman might not know the difference, but a seasoned geologist? It boggles the mind.

Wouldn't the chief geologist be responsible for establishing the drillin and sampling program? Wouldn't he also be responsible for ensuring the security of the samples so the testing results would be reliable?

As an officer (vice chairman) of the company wouldn't he want to be sure of this incredible gold find? Did he fulfill his responsibilities as chief geologist and company officer?

In any case he was an officer of the company that perpetrated the fraud labelled the scam of the century.

Whether he instigated it or not, he participated as chief geologist and a company officer. It makes no sense that he is allowed to escape with the loot ... some $90 million. How many small investors have lost their savings on Bre-X? How many widows and seniors have lost all of their savings? How many are still suffering?

The current regulatory system is failing to protect investors.

How can Government allow this to continue?

It's time to revamp the regulatory system and the justice system.

If anything positive came out of this regulatory fiasco it is this:
1. The public now knows with certainty that the Canadian Regulatory System is failing investors and does not provide investor protection either preventative or remedial.
2. The public now knows with certainty that the Canadian Justice System does not provide justice.

Unfortunately it also sends a message to the rest of the world that Canada really is the Wild West of investing without frontier justice.

At the same time it sends a message to prospective fraudsters that Canada is the place to be if their intent is to defraud the public.

Will this precipitate Government action? It should.

What can you do?

Write your Member of Provincial Parliament and your Member of Federal Parliament in Ottawa.

Do it for your children and their children.

Stan Buell