Regulators penalize Schillers

The British Columbia Securities Commission has banned the former president of The Quinto Mining Corp. (QU-V) and his wife from capital markets for 15 years and levied fines of $50,000 against the pair in connection with a 1999 distribution of shares.

Paul Schiller was president and his wife, Betty, was office manager in 1993 when the company arranged a distribution of 150,000 units, each consisting of one share and one purchase warrant. They were supposed to be distributed to Betty Schiller but ended up in the hands of investors in Ontario and the U.S.

Regulators found that the Schillers attempted to characterize Quinto’s issuance of the 150,000 units as a distribution to Betty Schiller “so they would not have to comply with the legislative requirements associated with a distribution to investors.” The commission panel said Betty Schiller “perpetrated a fraud on the investor,” and both Schillers “perpetrated a fraud on Quinto” by their involvement in the transaction.

At the time, Quinto was promoting a graphite project near Vernon, B.C.