B.C. regulator alleges Delta man diverted nearly $300,000 from company

The B.C. Securities Commission has accused Delta resident Jatinder Singh “Jack” Bal of fraud involving Goldeneye Resources Corp., where he was chief executive officer and a director. The allegations in the regulator’s notice of hearing have not been proven.

The commission alleges Bal directed Goldeneye’s chief financial officer in 2021 to transfer $297,267 to a third party to pay debt owed by Cache Exploration Inc., another company where Bal was also CEO and director. It says he gave the CFO a false explanation when questioned about the purpose of the transfer.

Goldeneye had $367,589 in available cash at the time, meaning the transfer accounted for about 80 per cent of its funds, according to the notice. Two private placements in September 2020 and February 2021 had raised about $500,000, and the company had said in three news releases that the money would be used for operating expenses.

The regulator says Goldeneye obtained no security for the transfer, created no legal or corporate record for it, and did not disclose it through a news release or material change report. It also alleges the company breached B.C.’s Securities Act and that Bal authorized, permitted or acquiesced to those contraventions.

Bal and Goldeneye, or their legal representatives, must appear at the commission’s offices on Sept. 15 if they intend to respond before a hearing is scheduled. Both Goldeneye and Cache have been under BCSC cease-trade orders since 2021.