Friday » October 10 » 2008

U.S. stock bribery cases have Vancouver connections

David Baines
Vancouver Sun


Friday, October 10, 2008


Vancouver stock promoter John Zanic is in a whole lot of trouble. On Sept. 16, he was arrested in Las Vegas for allegedly bribing brokers to buy shares in Guyana Gold Corp., a U.S. over-the-counter company that has had close ties to Vancouver.

The U.S. Securities and Exchange Commission filed a similar civil complaint against Zanic in U.S. District Court in New York. It also names promoters Glenn Grossman and Lawrence Steven Cohen of New York, and David Schmidt, whose address is not specified.

All four men were snagged in a sting operation in which an undercover FBI agent pretended to represent a group of brokers with trading discretion over the accounts of wealthy clients.

According to the SEC complaint, the four defendants offered in April to pay the undercover agent a 30-per-cent kickback for arranging the purchase of $2 million to $3 million worth of shares of Guyana Gold.

Zanic allegedly agreed to a "test transaction" in which the undercover agent arranged the purchase of 115,000 shares at a total cost of $72,350, for an average price of 63 cents per share.

To ensure the purchase orders were matched with the sell orders, Zanic gave detailed instructions to the undercover agent about the size, price and timing of the transactions. He also told him which market makers to use to execute the orders, the complaint alleges.

In May, after the transactions were matched and completed, Zanic wired $7,480 to the undercover agent, allegedly as a kickback. This was just 10 per cent of the gross value, much less than the 30 per cent that had been agreed upon.

When the undercover agent complained, Grossman wired another $6,300, and promised to send the remaining portion separately.

In the criminal action, Zanic was charged with conspiracy to commit securities fraud. After his arrest in Las Vegas, he was sent to New York, where he made an initial court appearance on Oct. 2. His bail was set at $500,000 and his travel restricted to New York and Las Vegas.

Guyana Gold is based in Las Vegas and is ostensibly exploring for gold in Guyana. Its shares are listed on the "pink sheets," an unregulated computerized trading forum in the United States. Since May, when the undercover agent bought shares at 63 cents each, the stock has slumped to two cents.

Until recently, Guyana Gold was controlled by controversial Vancouver promoter Louis Dion and operated under various names -- including World Bingo League Co., World Entertainment Corp., and World Mobile Network Corp.

In January this year, the company shifted into the exploration business and changed its name to Guyana Gold. The company's president and principal shareholder is now listed as Eduard Aronov.


dbaines@vancouversun.com

© The Vancouver Sun 2008



http://www.canada.com/vancouversun/news/business/story....f0-9ef0-e331597a6900

Guyana Goldfields Inc. (TSX:GUY) states that there is no connection with Guyana Gold Corp. (OTCBB:GUYGC) and Mr. Zanic
TORONTO, Oct. 9 /CNW/ - Guyana Goldfields Inc. (TSX:GUY)

Guyana Goldfields Inc. (the "Company") states that there is no relationship, nor has there ever been a relationship between the Company and Guyana Gold Corp. (OTBB:GUYGC) of Las Vegas. Recent news articles pertaining
to Guyana Gold Corp. (OTCBB:GUYGC) of Las Vegas have necessitated the Company to provide this clarification.

Guyana Goldfields is currently exploring and developing the world class Aurora Gold Project in Guyana, South America. The current gold resources at the Aurora Gold Project stand at 1.97 million ounces indicated and 2.68 million ounces inferred. The Company expects to release an updated gold resource in the very near future.

Guyana Goldfields Inc. is primarily focused on the exploration and development of gold deposits in the Guiana Shield of South America. The Guiana Shield is in the northern part of the Amazon Craton and covers parts of Guyana, Venezuela, Suriname, French Guyana, and northern Brazil. Guyana holds advanced exploration projects in various stages of development and has been operating in Guyana continuously since 1996.

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The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
>>

%SEDAR: 00022477E



For further information: John Patrick Sheridan, President and Chief Executive Officer, Guyana Goldfields Inc., Suite 1205-141 Adelaide Street
West, Toronto, Ontario, Canada, Telephone: (416) 628-5936, Fax: (416)
628-5935, Email: psheridan@guygold.com



http://www.cnw.ca/fr/releases/archive/October2008/09/c4837.html