A 91原创 man has agreed to accept sanctions from the BC Securities Commission (BCSC), related to a scheme that diverted more than $3.7 million in cash raised through a stock sale.

From 2015 to Dec. 19, 2018, Glenn Albert Little was a director of Green 2 Blue, later known as G2 Energy Corp, a company that drew BCSC attention following a $4.28 million stock sale.

Green 2 Blue was in the business of wood pellet production and biomass gasification technology.

In April 2018, Green 2 Blue announced it was selling stock in a private placement, with the funding from the sale to be used for facility upgrades, equipment purchases, or general working capital.

However, it did not disclose that out of the $4.28 million raised, $3,723,660 would be immediately spent on consulting fees.

Green 2 Blue only kept $556,340 of the cash, about 13 per cent, according to the BCSC.

By announcing the stock proceeds, but not disclosing that the vast bulk of the cash would be flowing out of the company, Green 2 Blue committed a misrepresentation under BC securities law.

As part of the settlement Little reached with the BCSC, he has agreed with a number of facts.

Those include that at the time of the press release, he knew about the plan to spend the bulk of Green 2 Blue鈥檚 stock placement proceeds on consultants, and that as a director of the company, he 鈥渁uthorized, permitted, or acquiesced鈥� in violating the Securities Act.

As part of the agreement, the BCSC has issued an order that Little resign from any position he holds as director or officer of a public firm, and is banned from acting as a director or officer for 12 years, can鈥檛 become a stock promoter, and can鈥檛 advise or consult in any capacity in the securities and derivatives markets.

Little will not pay a fine, as the BCSC settlement agreement noted that he鈥檚 broke.

鈥淟ittle is impecunious and lacks the ability to pay a monetary amount that would normally form part of any settlement,鈥� it said.

Other proceedings against Green 2 Blue and its directors have been dropped. Michael Lewis Young, another former director of the company, also reached a settlement agreement with the BCSC this spring, and agreed to pay a $25,000 fine.

The Green 2 Blue stock incident was linked to a company called BridgeMark Financial Corp., which, also reached a settlement with the BCSC in March of this year.

Anthony Kevin Jackson, BridgeMark, and Jackson & Company Professional Corp. admitted to a scheme involving private stock placements and pre-paid consulting fees done for little or no consulting work.

BridgeMark and various other consulting firms used their role to purchase shares in nine publicly-traded firms, with the companies announcing $50.9 million in gross proceeds in 2018. Most of that money flowed back to the consultants as 鈥渇ees,鈥� and the consultants then sold the stock on the open market, generally for less than the private placement price.

Jackson has been banned from a number of business and securities activities in B.C. for eight years.

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