Quick fix investigation of Petaquilla dealings unlikely

Anyone in Panama looking for a quick Canadian investigation into alleged insider trading with the purchase and sale of shares of Petaquilla Minerals could be in for a long wait.

Not so long perhaps as cases remaining before Panamanian courts, but serious investigations take time, and although Canada is highly regarded for its judicial transparency, the country’s regulatory bodies including Securities Commissions. are not quick to rush to judgment.

One of the jurisdictions that could lead an investigation of the Pacific Financial affair is the Ontario Securities Commission (OSC), the regulatory agency of the Toronto Stock Exchange, where the shares of Petaquilla Minerals are listed under the symbol PTQ.
Carolyn Shaw-Rimmington, manager of public affairs of the Commission said that due to confidentiality restrictions she could not comment on individual cases, but added that "while it is difficult to describe a typical investigation, the Commission staff review news reports or analysis of the company, phone records, diaries , emails and other records in various electronic devices that contain information related to brokerage accounts, relevant statistics, banking records, and then interview potential witnesses and perpetrators. "
The OSC makes an average of seven investigations a year, but in some cases, an investigation may last more than a year. The Commission presents its findings to an independent administrative panel that acts as a jury. The panel has the power to impose sanctions, such as banning individuals to act in leadership roles in public companies and to order the payment of fines by companies and individuals.
Because of Petaquilla Minerals corporate offices are in Vancouver, Canada, research related to the charges for the alleged exchange of information could fall under the jurisdiction of the Securities Commission of British Columbia (BCSC).
An OSC spokesman confirmed to La Prensa that Petaquilla is a public corporation governed by that however, the main regulator of brokerage activities is the BCSC. "Generally speaking, when regulated agents commit violations of securities law, the principal regulator handled research and coordinates its activities with other regulators, as appropriate," said the official, adding that both regulators, OSC and BCSC, could coordinate and exchange information.
Amir Mousavi, CEO of Bison Gold Resources, a Canadian mining company that also trades on the Toronto Stock Exchange, said that for him it is clear that Petaquilla Minerals (PTQ) should fall under the regulation of the OSC.
"Since PTQ is a company listed on the Toronto Stock Exchange, the exchange of privileged information (insider trading) is investigated by the OSC," he said. "Although the OSC's jurisdiction may be limited to sanctions abroad, it has the ability to impose penalties or criminal sanctions and trade restrictions in Canada on those commit these offenses."
Mousavi, who has invested in shares of Petaquilla, so is familiar with the company, said it was the first time he had heard about the allegations of illegal activities related to Petaquilla. He knew of strong rumors about paying bribes to Panamanian government officials to start trading. "Of course they are just rumors or allegations until they are proven by national agencies who investigate the cases," said Mousavi.
He said that these practices are not unknown in the industry. "Though I dare not put all the countries in this group, some regions are better known than others for corruption, extortion and unethical courts," said Mousavi.
Mousavi said that Bison, is a company that operates solely in Canada. "With the exception of certain protected areas and minimum internal problems, Canada is known as one of the best , environmentally friendly mining jurisdictions," said company executive.
"Combine this with access to economic capital to fund operations and sufficient skilled labor as well as political stability and civil court that really works, gives us the ingredients for success. All that remains is geology and a little luck. "
Despite this, he said he understands that it may be difficult for the OSC to investigate every complaint of financial irregularities against a Canadian company.
"The Toronto Stock Exchange and the CSO have some of the best standards of investor protection, with strict reporting requirements and regulations," said Mousavi. "However, the fact that a 2 258 companies listed on the Toronto Stock Exchange regularly makes me think that all these companies is a challenge. It's really impressive that regulators are able to 'maintain order', as well as they do, especially with limited human resources. "
While Petaquilla Minerals in Canada and its shares are traded on the Toronto Stock Exchange in the United States these actions are marketed as an over the counter or OTC action under the symbol PTQMF.
Officials from the Securities and Exchange Commission of the United States refused to comment on whether the case of Petaquilla Minerals would fall under the jurisdiction of the Commission. But, in the past, the Commission has imposed substantial fines in cases outside the United States.
Specifically, on July 27, 2012, the agency won a judgment for $ 13 million against merchants located in Hong Kong and Singapore, they used insider information to reap millions of dollars in profits, in a merger between a Chinese company and a company in Canada.
The spokesperson for the Securities and Exchange Commission of the United States (SEC, Christina D'Amico would not say whether the Commission would have jurisdiction over the case of Petaquilla On its website, the agency said it has carried out a record number of investigations related to the exchange of inside information (insider trading) in the last three years.
"The exchange of privileged information remains a high priority for the Commission. The SEC conducted 58 investigations of insider information exchange in fiscal 2012 against 131 individuals and entities.
The agency said aggressively pursuing these cases because they undermine "the equity that is fundamental to the integrity and fair functioning of capital markets."
Newsroom checked out Panama’s leading daily newspapers and so far not a word about the FP affair has appeared. For the second biggest country in the world looking at Panama from a distance can sometimes feel like looking down the wrong end of a telescope.