BCTV + Beat former exec in troubles

General Radio News and Comments, Satellite & Internet Radio and LPFM

Postby Jack Bennest » Wed May 17, 2006 4:33 pm

David Baines, Vancouver Sun
Published: Wednesday, May 17, 2006
Barry Duggan, a certified general accountant and former president of B.C.'s largest television station, has been permanently banned from the U.S. stock market.

Duggan agreed to the ban as part of a settlement with the U.S. Securities and Exchange Commission, which accused him of manipulating the share price of an Internet adult porn company that he helped run in 2001 and 2002.

In a release Tuesday, the SEC said Duggan -- without admitting or denying the SEC's allegations -- has agreed to never again act as a director or officer of a U.S. public company.

He also agreed to a permanent ban from participating in any penny stock offering in the U.S. and to pay a $25,000 US civil penalty.

Duggan, 61, is president of a The Beat 94.5 FM, a Vancouver radio station. He was previously executive vice-president and general manager of CKVU television, and for a brief period in 1996, served as president and chief executive officer of BCTV, the province's largest television station.

He has also been a member of the Certified General Accountants Association of B.C. since 1971. On Tuesday, after being advised of the SEC action, the association said it will issue a release advising the public that Duggan has been prohibited from "appearing or practicing before the [SEC] as an accountant."

Duggan could not be reached for comment Tuesday.

In April 2005, the SEC filed a complaint in U.S. District Court in Nevada alleging that Duggan and several others participated in a scheme to manipulate the share price of Exotics.com, which traded on the loosely regulated OTC Bulletin Board in the United States.

Exotics.com operated a website that offered a range of adult-oriented sexual services, including a directory of escort services and access to X-rated movies. Duggan served as the company's chief executive officer and as a director from September 2001 to November 2002.

The SEC alleged that during this period, Duggan "played a role in the scheme by, among other things, approving Exotics' false reporting of $3.6 million [US] of goodwill in its financial statements -- which led to an overstatement of assets by approximately 627 per cent."

The SEC further alleged that Duggan "reviewed and approved drafts of fax and e-mail spam messages sent out on behalf of the company which contained misleading financial information."

One of those faxes -- distributed in December 2001 to 140,000 potential investors -- stated that the company's revenues "are exploding, almost tripling from 1998 to 1999 and almost doubling again last year [2000] to over $2.5 million."

However, according to financial statements, the company's total revenues for 2000 were only $470,202, the SEC alleged.

Other Vancouver-area men named by the SEC are:

- Ingo Mueller of West Vancouver. The SEC alleges he engaged in manipulative trading of Exotics.com shares through his private company, St. George Capital Corp., in accounts at Yorkton Securities and Global Securities.

- Firoz Jinnah of Burnaby, Exotics.com's president and the general manager of St. George Capital. The SEC alleges he also reviewed the draft releases before they were disseminated and, along with Mueller and Duggan, "knew, or were reckless in not knowing" of accounting irregularities.
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