Sungrow Minerals investigated by stock market regulator

Here's one from the Surrey Leader. Dan Ferguson reports that when Sungro Minerals Inc. was operating out of a Surrey office building in the 7400 block of 132 Street, its stock price took a dramatic jump.

It rose from 35 cents a share (U.S.) to $4.75 in just two months in 2009 – pretty good for a mining exploration firm that reported $299 in assets and $18,864 in debt.

That got the attention of the B.C. Securities Commission (BCSC) the independent agency that regulates securities trading in this province.

Commission staff quickly determined the company owned no mineral property, and the man running it had no training or experience in mineral exploration.

The company told BCSC staff that it had no explanation for the share price increase.

Concerned the sudden rise could be the result of a scheme to artificially boost the share price, the commission issued a cease trading order.

Shortly after that, the company announced it was shifting its head office to the United States.

Here's the key - a mining company's stock has a dramatic increase in stock value. When investigated it turns out the company owns no mineral property and the man running the company has no experience in mineral exploration.

Sounds a lot like Bre X or Michael Ritter in Alberta. The Vancouver Sun recently reported on Sungro as well.

Sungro were even negotiating acquisition of Oil and Gas Prospect in Converse County, Wyoming. Can you say Enron? Privatization of US energy. Endorsed by the Bushes. After it fell, Thomas E. White, the Enron Book cooker became the Pentagon's book cooker as Secretary of the Army.

The Vancouver Stock Exchange was famous for scams. Bogus companies that didn't really exist were created on paper. Insider trading hype would generate huge speculation in the fake companies which reflected a huge jump in share price. Right before the stock crashed the ring ;leaders would sell and escape to Florida only to pull off the same scam 6 months later.

Time Magazine referred to the VSE as the Scam Capital of the world. There were groups in Surrey plotting stocks trying to figure out which were the scams. They would then invest in the scam knowing it would surge in speculation and try and sell before it crashed. I kid you not. The world does not need that kind of market instability.