Sunday, January 20, 2013

John Gregory Paterson pulls 6 years - Updated

Mr. John Gregory Paterson, former QP and chief dipchit of the horrid scam known as Southwestern Resources has been sentenced to 6 years in prison.

As a non-violent federal offender with no danger to the public for recidivism Mr. Paterson may be released from custody in as little as one year (with conditions until full parole is granted)
Mr. Paterson falsified assay data which resulted in losses exceeding $ 260.5 million.

Paterson ran his scam from May 2003 to February 2007, during which he issued 25 press releases reporting 446 assay results ... 433 of which were fictional.

"This was a large-scale, massive fraud committed on the investing public and on Southwestern Resources."

She said Paterson took advantage of the high regard in which he was held in the community to commit his offences, then took active steps to cover up and delay discovery of his fraud. Among other things, he recruited the on-site project manager, John Zhang, to assist in the fraud and paid $500,000 "to secure his loyalty and silence."

What can a body say? Without an appreciation of exactly how much Mr. Paterson profited personally did his crime pay or did it not?

UPDATE : According to Stockwatch Mr. Paterson booked trading profits of $5.63-million, but paid $7.8-million to settle a class action lawsuit. A comment below the story very correctly points out Mr. Paterson would have almost certainly faced 20 years or more if this was an SEC matter in the United States.

We do know the trio who ran Nortel into extinction while pocketing more than $ 13m in bonuses were all found not guilty of a criminal offense.

THAT questionable conduct paid off very well indeed, crime or no crime. Given what is happening every day under our bloody noses and quite openly, what can a body conclude about securites regulation in this country?