One of the most interesting stock scams I can think of is back in the news, with John Felderhof, a former geologist and executive at the company, being acquitted on charges of insider trading and misleading investors in the Bre-X fraud.

The mining company began as a penny stock and at one time sported a market cap of CAD $6 billion before collapsing. It turned out key samples had been "salted," meaning that the huge gold reserves the company claimed to be sitting on did not exist.

The story is filled with intrigue -- one key geologist ostensibly died in a plane crash but rumors continue to swirl that he is alive and living in hiding.

As for Felderhorf, he was not at his own trial. According to the New York Times, "He is believed to be living in Bali, although his wife said in a published interview this week she thought he was living in Canada." Sounds like a great relationship.

To learn more about the fascinating story of the Bre-X fraud, check out Bre-X: The Inside Story. It's not the greatest business book ever, but for 57 cents used on Amazon, it's worth picking up.

Executive in legendary Bre-X fraud is acquitted originally appeared on BloggingStocks on Thu, 02 Aug 2007 14:50:00 EST. Please see our terms for use of feeds.

Questionable options practices continue to take their toll on companies. This time, a Canadian darling, without a doubt one of Canada's recent success stories, Research in Motion Ltd. (NASDAQ:RIMM) might be getting into trouble.

The BlackBerry maker (affectionately nicknamed CrackBerry) missed its financial reporting deadline of October 17. RIM was supposed to file the second-quarter earnings on that date in accordance with the Ontario Securities Commission. As a result, the OSC ordered all insiders, about 60 of them including co-CEOs Jim Balsillie and Mike Lazaridis, to stop trading in the company's stock. Even if the company files now, insiders would not be able to trade until two days after the filing. There will still be a hearing on November 7 regarding the ban.

While this is happening in Canada, in the U.S., the Securities and Exchange Commission has also asked RIM to supply the commission with stock-option grants and practices information. However, the SEC requests the information to be provided voluntarily. RIM said it would comply with the SEC's request.

Like most companies lately, RIM decided to look into its accounting practices recently and review financials going a few years back. RIM plans to restate earnings starting in 1998, but at the same time stated it doesn't believe the adjustments would be material and that earnings since 1997 would be reduced by up to $45 million.

In addition, RIM has to arrange some accounting "glitches" arising from different accounting rules in Canada and the U.S.

With Apple Computer, Inc. (NASDAQ:AAPL) just barely avoiding NASDAQ delisting, I wonder when we'll hear the last of that.

Research in Motion insiders banned from trading RIMM originally appeared on BloggingStocks on Tue, 31 Oct 2006 11:04:00 EST. Please see our terms for use of feeds.