Former executives of Redell Mining (REDC-V) are in a British Columbia courtroom facing one count of fraud and 19 counts of misrepresentation under the province’s Securities Act relating to the company’s promotion of the La Forma gold mine in the Yukon.
The charges against former president Glen Elmo White and vice-president David Thomas laid by B.C’s Securities Fraud Office involve allegations that the pair claimed gold reserves of 700,000 oz. at the dormant mine. A subsequent geological report ordered by the Vancouver Stock Exchange showed that true reserves were closer to 70,000 oz. gold. Redell is alleged to have used boiler rooms in several countries to promote the stock, which rose to over $6 in early 1996. Trading was halted three months later after the VSE launched an investigation.
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