News & Events

News Release

Ontario Securities
Commission


20 Queen St. W.
Box 55, Suite 1900
Toronto, ON M5H 3S8
Commission des valeurs mobilières de l'Ontario
FOR IMMEDIATE RELEASE

June 30, 2011


OSC Panel Issues Sanctions Against Sulja Bros. Building Supplies, Ltd.,
Petar Vucicevich, Kore International Management Inc., Andrew DeVries,
Steven Sulja, Pranab Shah, Tracey Banumas and Sam Sulja
for Breaches of the Securities Act


TORONTO – In a decision released today, an Ontario Securities Commission (OSC) panel made its sanctions order in what it found to be a “pump and dump” scheme that used “overwhelmingly positive and false press releases” to deprive investors of over CDN $5.6 million. In addition to trading, director and officer bans, a total amount of more than $7 million was ordered payable by the respondents.

The Commission Panel ordered that:

  • Petar Vucicevich (“Vucicevich”) and Andrew DeVries (“DeVries”) pay administrative penalties of $750,000 each for breaches of the Securities Act (the “Act”);
  • Vucicevich, DeVries, Kore International Management Inc. (“Kore Canada”) and Sulja Bros. Building Supplies, Ltd. (“Sulja Nevada”) are jointly and severally liable to disgorge the $5.6 million they obtained from investors;
  • Vucicevich, DeVries Steven Sulja, Sam Sulja, Tracey Banumas (“Banumas”) and Pranab Shah (“Shah”) cease trading or acquiring securities and to not act as directors or officers of issuers or registrants for periods ranging from five years to permanent bans;
  • Additional administrative penalties were also levied, ranging from $5,000 up to the $750,000 ordered against DeVries and Vucicevich; and
  • The corporate Respondents permanently cease trading or acquiring securities.

In its earlier decisions, Vucicevich and DeVries were found to have breached ss. 25(1)(a), 53(1) and 126.1(b) of the Act. Steven Sulja and Sulja Nevada breached s. 126.2(1) of the Act. Sam Sulja, Banumas, Shah and Kore Canada were found to have breached s. 126.1(a) of the Act. The panel found that all Respondents acted contrary to the public interest.

The sanctions hearing for all Respondents was held on November 30, 2010. A copy of the Reasons and Decision on Sanctions in this matter is available on the OSC website at www.osc.gov.on.ca. The Commission released two separate judgements on the merits regarding different Respondents on October 28, 2010; a third was released May 25, 2011.

The mandate of the OSC is to provide protection to investors from unfair, improper or fraudulent practices and to foster fair and efficient capital markets and confidence in capital markets. Investors are urged to check the registration of any person or company offering an investment opportunity and to review the OSC’s investor materials available at www.osc.gov.on.ca

 


-30-


For Media Inquiries:     Wendy Dey
Director, Communications & Public Affairs
416-593-8120

Carolyn Shaw-Rimmington
Manager, Public Affairs
416-593-2361

Dylan Rae
Media Relations Specialist
416-595-8934

For Investor Inquiries:     OSC Contact Centre
416-593-8314
1-877-785-1555 (Toll Free)