According to the press release:
The panel found that Cinnabar Explorations Inc., Christopher James G. Bass and Dale Zucchet illegally sold shares to seven investors between April and July of 2011.
Cinnabar, a mining company, has never filed a prospectus in B.C. The company claimed that the seven investors fell under the family, friends and business associates and accredited investors exemptions in the securities rules. The panel found they did not.
Bass was the Chief Executive Officer and a director of Cinnabar. He was a securities broker from 1986 to 1987. In 1988, the BCSC sanctioned him.
The panel also found that Zucchet made misrepresentations about the shares when he was soliciting investors. He talked about Cinnabar going public. This was untrue. He also counselled an investor to buy shares illegally.
The panel directed the parties to make submissions on sanctions according to the schedule set out in the findings. A hearing on sanctions is scheduled for the week of October 7, 2013.