The British Columbia Securities Commission has settled with a man who admitted he lied about his involvement with a U.S. over-the-counter issuer.

In a settlement agreement, Karnjit Singh Bahd admitted that he lied in two separate interviews with investigators. The interviews were a part of an ongoing BCSC investigation into suspicious trading in the shares of Sungro Minerals Inc., a B.C. reporting issuer quoted on the U.S. over-the-counter markets.

Bahd told BCSC investigators, among other things, that he did not give nine seed shareholders money to pay for their shares, after he persuaded them to invest in Sungro Minerals. Bahd held Sungro Minerals shares himself, which he sold at a profit. Under questioning, Bahd said nobody told him to sell the shares and that he did not inform anyone about it.

Bahd has admitted that these statements were false. He reimbursed the seed shareholders for the purchase price of their shares. He also admits that he sold his shares, at specified prices on specific dates between June 23, 2009 and July 6, 2009, at the direction of a friend connected to Sungro Minerals.

Bahd will pay the BCSC $75,000 and is prohibited, with limited exceptions, from purchasing or trading securities for 25 years. He is also prohibited, for the same period of time, from becoming or acting as an officer or a director of any issuer, becoming or acting as a promoter, acting in a management or consultative capacity in connection with the securities market, and engaging in investor relations activities.

The executive director previously issued orders against five of the seed shareholders, who admitted in a settlement agreement that they had made false or misleading statements to BCSC investigators about their purchase of Sungro Minerals shares (see 2010 BCSECCOM 620).

The executive director will provide a commission panel with an update on the Sungro Minerals investigation on June 2, 2011 at 8:30 a.m. A temporary order, originally issued by the executive director and confirmed by a commission panel, prohibits trading in Sungro Minerals until a hearing is held and a decision is rendered.

The B.C. Securities Commission is the independent provincial government agency responsible for regulating trading in securities within the province. You may view the settlement agreement on our website www.bcsc.bc.ca by typing Karnjit Singh Bahd or 2011 BCSECCOM 243 in the search box. Information regarding disciplinary proceedings can be found in the Enforcement section of the BCSC website (http://www.bcsc.bc.ca/enforcement.asp).

Please visit the Canadian Securities Administrators' Disciplined Persons List (http://www.securities-administrators.ca/disciplinedpersons.aspx?id=74) for information relating to persons disciplined by provincial securities regulators, the Investment Industry Regulatory Organization of Canada (IIROC) and the Mutual Fund Dealers Association (MFDA).

If you have questions, contact Richard Gilhooley, media relations, 604-899-6713. For public inquiries, call 604 899 6854 or 1 800 373 6393 (toll free).

Learn how to protect yourself and become a more informed investor at www.investright.org.

Contacts: British Columbia Securities Commission Richard Gilhooley Media Relations 604-899-6713 or (Canada) 1-800-373-6393 British Columbia Securities Commission Public Inquiries 604-899-6854 or Toll Free: 1-800-373-6393 www.bcsc.bc.ca

SOURCE: British Columbia Securities Commission