Stock promoter Jatinder Singh Bal denies B.C. Securities Commission allegations over a $300K transfer in company funds to pay off a debt<\/p>\n
The B.C. Securities Commission has alleged a Delta resident committed fraud when he transferred nearly $300,000 from one of the public companies he was directing to a third-party creditor of another company he headed, without disclosing the move to investors.<\/p>\n
Jatinder Singh (a.k.a. Jack) Bal was the CEO and a director of Goldeneye Resources Corp. (TSXV:GOE), a junior mineral exploration company in February 2021 when he instructed Goldeneye\u2019s chief financial officer\u00a0to transfer $297,267 to a creditor of Cache Exploration Inc. (CEXPF), another junior mineral exploration company Bal headed as CEO, according to an Aug. 14 news release from the commission.<\/p>\n
Both companies have ceased trading for years.\u00a0Goldeneye\u2019s shares are valued at $0.015 each.<\/p>\n
\u201cGoldeneye raised approximately $500,000 through two private placements with investors who were told the money would be used for general working capital or for general working capital and current liabilities,\u201d the commission noted.<\/p>\n
However, much of the money was allegedly diverted.<\/p>\n
\u201cBal did not tell the CFO [the transfer] was to pay off Cache\u2019s debt owed to the third party, but rather gave a false reason for the transfer. This consumed approximately 80 per cent of Goldeneye\u2019s cash,\u201d stated the commission.<\/p>\n
It is alleged Goldeneye, under Bal\u2019s direction, did not keep a record of the transfer to the third-party creditor, did not file a material change report and omitted the transfer information from a subsequent news release and from interim financial statements.<\/p>\n
By doing so, the commission alleges that Goldeneye and Bal made \u201cfalse or misleading statements\u201d in a news release and in interim filings, and failed to comply with its continuous disclosure obligations.<\/p>\n
The commission\u2019s allegations have not been proven. The commission requires Bal and Goldeneye or their counsel to appear at the commission\u2019s offices on Sept. 15, 2026 if they wish to be heard before a hearing is scheduled.<\/p>\n
Business in Vancouver reached Bal Friday via email.<\/p>\n
Bal told BIV the money was a loan paid directly by the CFO to the third party creditor and was signed off by directors and announced in a news release.<\/p>\n
\u201cI don\u2019t see the fraud,\u201d\u00a0Bal said.\u00a0\u201cI did not personally benefit.\u201d<\/p>\n