SEC defendant Genovese files motion to dismiss

by Mike Caswell

Ontario's Bobby Genovese has asked that a judge dismiss civil charges he faces from the U.S. Securities and Exchange Commission for manipulating Liberty Silver Corp. in 2012. He says that the SEC's allegations fall short of making a case for securities fraud. Much of the case is vague or involves activity "completely disconnected from investors," he contends.

The denials from Mr. Genovese come in response to a case in which the SEC accused him of improprieties related to his sale of $17.5-million worth of Liberty Silver shares. (All figures are in U.S. dollars.) The SEC claimed that he arranged for promotional newsletters and enlisted the help of a New York brokerage to boost the stock, all while failing to disclose his large share position or his intention to sell that position. The stock went to a $1.55 high before the SEC halted it.

For his part, Mr. Genovese characterizes the events much differently. In a motion to dismiss filed on Feb. 2, 2018, he says that much of the SEC's complaint is too vague to base anything on. The SEC accused him of touting Liberty Silver without disclosing his true intentions, but the regulator did not say how he misled anybody. It also did not provide "the specificity that is necessary to meet the pleading standard for securities fraud," he contends.

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