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Pocklington accused of securities fraud in Arizona
Published Saturday, April 14, 2012 2:47PM MDT
Officials in Arizona have accused Peter Pocklington of securities fraud, saying a gold mine he wanted investors to take part in, could never produce what was claimed by him and others.
CTV News has learned an application has been filed in Phoenix to have Pocklington pay back investors millions of dollars.
The court application claims Pocklington was seeking investors to finance the start of work at a gold mine, through a company called Crystal Pistol Resources.
The Securities Division of the Arizona Corporation Commission claims the investors were defrauded by Pocklington and another man, John McNeil.
A document filed by the Commission shows how it believes the mine would not have met expectations.
"Respondents misrepresented to offerees and investors the amount of recoverable gold on the Arizona mining property," The document states in part.
The report from the Commission goes on to claim the defrauding was partially achieved by posting flawed analysis reports on the internet.
Representatives from the Commission can't comment on the case specifically because it's before the courts, but one member said the State of Arizona does everything possible to recover lost funds in such cases.
Crystal Pistol is denying the charge of fraud. "Our company emphatically disagrees with the allegations made by the Arizona Corporation Commission," A statement issued by company manager Howard Eaton states.
The company says it did thorough geological testing of the gold mine site and it firmly believes the mine is an "extraordinary mineral prospect." It also says it's committed to raising capital in accordance with rules and regulations, and is "optimistic" the issue can be resolved.
It's believed the amount of money that may be owed back to investors is around $4.8 million in total.
With files from David Ewasuk