Investors reading the popular Elite Stock Report newsletter in 2010 learned dramatic news about a largely unknown penny stock called Guinness Exploration Inc.
The company, whose shares traded on the U.S. over-the-counter market, was sitting on one million ounces of recoverable gold in a property in the Yukon, the newsletter reported, and its share price could increase 10-fold within a year. Investors “could be taking your profits out by the truckload,” the report said.
It sounded too good to be true, and it turns out it was.
Colin McCabe, the Abbotsford, B.C.-based author of the investment newsletter, received over $5-million (U.S.) to write stock reports in 2010 that were so glowing they read like “tabloids one might expect to see at a grocery check-out” – and wrote about Guinness without even knowing who was ultimately behind the payments he received, the British Columbia Securities Commission ruled in a decision released Tuesday.
Janet McFarland – Globe and Mail – July 15, 2014.
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