Star Metro - Core Capital Partners Statement on BC Securities Commission Findings

This matter has spanned over eight years and was riddled with glaring prejudice, blatant disregard for basic investigative procedure and a complete disregard for public interest. Throughout this ordeal, Core, its principals and partners have experienced the Commission's overreaching powers, lack of due process, suppression/ignorance of exculpatory evidence and retaliatory behaviour.

Shortly after commencing the investigation in 2018 and five years before putting forth an accusation of wrongdoing, the Commission froze the bank accounts, brokerage accounts, and real assets of Core, its principals and partners. This seizure of assets would become the central pressure point the Commission relied on to produce its desired outcome: inflict extreme financial distress such that the respondents have no choice, but to come to the table for an egregious settlement while acquiescing to baseless accusations or some variation thereof. The value of the frozen assets is in excess of $35 million; and they remain frozen today.

In July 2023 the Commission issued a Notice of Hearing outlining the accusations against Core, its principals and partners.

The Hearing
A hearing into the matter commenced in March 2024 - spanning sixteen days over eight months, ultimately concluding on January 20, 2025. Throughout the hearing, it became abundantly clear that the BCSC developed a narrative in October 2018 and then spent the next five years attempting to backfill their narrative by cherry picking evidence to support their predetermined conclusions, all while decisively ignoring any exculpatory evidence. Plainly put: any shred of evidence that contradicted the BCSC's narrative was completely ignored.

At the hearing the Commission called a single witness, Ms. Alisa Smith, a senior investigator who spent five years primarily focused on the case. Ms. Smith gave testimony over twelve days, during that testimony she demonstrated a tenuous grasp of the facts on hand. Her testimony was almost entirely of hearsay, which constituted her reading aloud various documents and emails but offering no firsthand evidence.

Ms. Smith was combative under cross examination. On 247 occasions she was unable to recall simple and seemingly obvious steps she would have taken in her investigation. When asked if she investigated the management teams of the impugned companies she responded, 'I don't recall'. When asked if she contacted the purchaser of a company the BCSC purported was a sham company and did not exist she responded, 'I don't know.'. She would go on to answer with some variation of 'I don't know', another 245 times. Furthermore, she admitted to not contacting key third parties or reviewing large volumes of potentially relevant material.

This investigation itself is a tale of what was investigated and more importantly, what was not investigated.

The Commission argued that it put forth a full body of evidence against Core. However, over 114,000 emails the Commission had seized were marked irrelevant and were never read, despite having been in the Commission's possession for over five years. Furthermore, Commission staff did not accurately track how they deemed the 114,000 emails 'irrelevant'. In 2024 when the 'irrelevant' emails were provided to Core's counsel they found exculpatory evidence within them using search terms the Commission purports it used before deeming them 'irrelevant'. Furthermore, it has recently come to light that in September 2025 the Executive director was notified that Ms. Smith accessed a privileged email in August 2025. Despite the gravity of this breach, the information was not disclosed to respondents' counsel until three months later in December 2025. The delayed disclosure raises serious concerns regarding transparency, procedural integrity, and oversight within the BCSC.

The Commission, alleged that the companies involved in this matter issued misleading news releases, however, chose not to interview directors or officers of the companies - all but absolving them of any wrong-doing. Notably, some of those same individuals - purported by the Commission to be nominees of Core - continued to serve, and in some cases still sit on the boards of the companies' years after Core's involvement ended.

Despite spending five years investigating this matter the Commission chose not to speak to Core, its principals or employees.

Onward
Core Capital categorically denies any wrongdoing and rejects the allegations in their entirety. The firm remains resolute and fully prepared to vigorously challenge these matters once again before the Court of Appeal at the appropriate time. Further updates will be provided when procedurally and legally appropriate.

For media enquiries:
[email protected]

SOURCE: Core Capital Partners Inc.

View the original press release on ACCESS Newswire

M.Johnson--SMC