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Jim Letourneau's Blog

Investing, Technology, Travel, Geology, Music, Golf. I think that covers it.

Rogue Geololgist John Paterson Pleads Guilty

Partial chart of SWG.TO from 24hgold.com

Partial chart of SWG.TO from 24hgold.com

Stockwatch reported today that John Paterson has pleaded guilty to criminal fraud charges. Paterson is the ex-CEO of Southwestern Resources Corp. I wrote about this company back in 2005 and owned a position in the company as well. He was charged with altering the assy results from a gold project in China called Boka from 2003-2007. 

Southwestern Resources was (SWG.TO) isn't around anymore and there is no question that shareholders were fleeced.  At least this story has some closure, there doesn't appear to be much mystery to what Paterson did. Other times, a geologist  flirts with the line so often that they lack the credibility to pull off a big fraud like this guy -B.C. geologist has dodgy C.V., links to alleged sham companies.  

While the name of geologist John Felderhof is forever associated with the massive Bre-Ex scandal, not many people realize that he was never convicted except in the court of public opinion (Bre-X's John Felderhof: The man who can't clear his name). 

My take is that all geologists are above average but some are optimists and some are pessimists by nature. Very few are blatant crooks.