Say It Ain't So Jon!

[Parsad]

Larry Wilcox, who played the clean-cut and absolutely morally correct police officer on "CHiPs", has been charged by the SEC for paying kickbacks on the mining company he runs. 

 

http://www.cnbc.com/id/39562699

 

I'm pretty sure that alot of companies do this and get away with it in Canada.  Personally in my opinion, any underwriting firm getting any sort of options or shares for underwriting a company, and then selling the stock to their client accounts, is a form of a kickback and should not be allowed.  It's such an incestuous relationship!  Not unlike the dealer-broker network in the mutual fund industry.  The incentives are completely misaligned with ethical behavior.  Cheers!

[RRJ]

Agree.  These sorts of kickbacks are part and parcel of the backdoor reverse merger IPO and pump and dump schemes.  They get stock through the transaction and then pump and dump, leaving the company with a disparate (and disgruntled) shareholder base that they can't even afford to administer properly.  Lots of companies desperate for capital get ruined this way by unscrupulous "professionals" offering to solve their capital problems.  Sometimes the companies aren't victims of course, but conspirators.