Association suspends geologist for disclosure violations
Reports provided an excessively rosy picture of prospect in Arizona
BY DAVID BAINES, VANCOUVER SUN DECEMBER 3, 2010
Geologist Duncan Bain has been disciplined by his professional association for writing reports for a U.S. exploration company that did not comply with national standards for mineral disclosure.
In a settlement agreement with the Association of Professional Engineers and Geoscientists of B.C., Bain admitted he wrote two reports for U.S. Canadian Minerals Inc. that did not comply with National Instrument 43-101, the national securities policy that prescribes standards for mineral disclosure.
He agreed to a six-month practice suspension, starting on Dec. 31. He also agreed to pay the association's costs, up to a maximum of $5,000.
While this sounds like a technical infraction, it is not. Bain's reports provided an excessively rosy picture of U.S. Canadian Mineral's gold-silver prospect in Arizona and was used by the company to pump the stock, which trades on the OTC Bulletin Board in the United States.
Bain, 56, obtained his geology degree from the University of Western Ontario in 1977 and became a member of the B.C. association in 1991. He is also a member of the Association of Professional Geoscientists of Ontario.
He lives in London, Ont., where he runs his own firm, Duncan Bain Consulting Ltd., which provided consulting services to U.S. Canadian Minerals.
He also serves as a director of Vancouver-based St. Elias Mines Ltd., which trades on the TSX Venture Exchange, and Calgary-based Toa Minerals Ltd., which trades on the bulletin board.
Bain is one of handful of geologists who have provided professional services for dodgy companies that trade on the U.S. over-the-counter markets.
Geoff Thiele, direction of investigations and discipline for the B.C. association, told me earlier this week that due to member involvement in these companies and the attendant reputational risk, the association is proposing to place these geologists in a special pool from which names will be randomly selected for practice reviews.
"We want our members' work for these companies to be done to the expected standard and that the members carry out appropriate due diligence regarding the work and the people it is being done for," he said.
All I can say is, it's about time. If the association balks at this extremely modest proposal, its credibility as a regulatory organization will be very much in doubt.
The kind of money Ray Anthony has is not visible to Forbes. I can assure you, he's not broke. I do find it interesting that his car and boat lots have gone to consignment only. If you've got any spare time, look into Robert Arnoni of Youngstown next.
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