B.C.’s financial markets regulator is accusing a Delta resident of committing fraud against a company and its investors while serving as its CEO and director. The B.C. Securities Commission’s allegations against Jatinder Singh “Jack” Bal have not been proven. In a notice of hearing published Friday, the regulator alleges that Bal directed the chief financial officer of Goldeneye Resources Corp. to transfer nearly $300,000 of the company’s cash to a third party as payment of debt owed by another company Bal controlled. “When Goldeneye’s CFO questioned Bal on the purpose of the transfer, Bal provided a false reason,” the notice reads. The alleged fraud occurred in 2021, according to the regulator. The other company was Cache Exploration Inc., for which Bal also held the positions of CEO and director. Both Goldeneye and Cache have been subject to cease-trade orders issued by the BCSC since 2021. According to the notice, Goldeneye completed two “private placements”—one in September 2020 and one in February 2021—that had raised a combined total of about $500,000 from investors at the time of the alleged fraud. Goldeneye had available cash assets of $367,589. The transfer to pay Cache’s debts consumed $297,267 of this total, or approximately 80 per cent of Goldeneye’s funds. In each of three news releases issued about the private placements, Goldeneye told investors the funds would be used for that company’s operating expenses, according to the BCSC. “At the time of the transfer, Goldeneye did not obtain any security for, or create any legal or corporate record of, the transfer nor did it issue a news release or material change report to disclose the transfer,” the notice reads. In addition to alleging that Bal committed fraud, the BCSC alleges that Goldeneye violated the provincial Securities Act by failing to report the transfer or mention it in news releases issued after it happened. As the company’s CEO and director, Bal authorized, permitted or acquiesced to Goldeneye’s contraventions, according to the regulator. Bal and Goldeneye, or lawyers representing them, must appear at the BCSC’s offices on Sept. 15 if they wish to respond to the allegations before a hearing is scheduled on the matter.
