ASC sanctions Richard Schmidt and Goldenrod Resources Inc.

CALGARY, July 25, 2013 /CNW/ - The Alberta Securities Commission (ASC) has found that Richard Schmidt and Goldenrod Resources Inc. illegally traded and distributed Goldenrod securities, and that Schmidt perpetrated a fraud on investors and made false and misleading statements to investors.  All that misconduct was found to be contrary to the public interest.

In its decision, an ASC panel ordered that:

• Schmidt must pay an administrative penalty of $200,000, disgorge $700,000, and pay costs of $5,000.  Schmidt is also permanently banned from trading in or purchasing securities, the use of Alberta securities laws exemptions, and acting as a director or officer of any issuer; and
• all trading in or purchasing of Goldenrod securities will cease until such time, if ever, that the ASC Executive Director issues a final receipt for a prospectus filed by Goldenrod.

The ASC panel emphasized the serious nature of the named parties' misconduct, including the illegal trades and distributions.  The ASC panel further stated: "Even more egregious were Schmidt's false and misleading statements and his fraudulent course of conduct. He lied to at least some Goldenrod investors, reassuring them with false statements regarding Goldenrod's activity and level of success." From 2006 to 2010, Schmidt raised approximately $5 million from investors. The ASC panel found "that $700 000 of the approximately $5 million raised was not used for Goldenrod's operations but was diverted by Schmidt to himself for his personal use."

A copy of the decision is available on the ASC website at www.albertasecurities.com.

The ASC is the regulatory agency responsible for administering the province's securities laws. It is entrusted to foster a fair and efficient capital market in Alberta and to protect investors.  As a member of the Canadian Securities Administrators, the ASC works to improve, coordinate and harmonize the regulation of Canada's capital markets.

SOURCE: Alberta Securities Commission

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