Background:
Kunekt Corporation, a Nevada-based company, was a reporting issuer in British Columbia. In late 2010, the appellants, through various offshore accounts, accumulated large amounts of Kunekt shares. A promotional campaign was launched in early 2011 by Capital Finance Media (CFM), distributing "tout sheets" that artificially inflated the stock price. The appellants were accused of funding this campaign through complex financial transfers, concealing their identities. Khorchidian and Deyrmenjian held offshore accounts that received substantial profits from trading Kunekt shares during this period.

Legal Issues:
The central issue was whether the appellants violated Section 57(a) of the British Columbia Securities Act by creating an artificial price for Kunekt shares through tout sheets. The appellants argued that the Commission made speculative inferences without sufficient evidence and disputed the BCSC’s territorial jurisdiction, as EHT and Craven operated outside British Columbia.

Court’s Findings:
The Court of Appeal upheld the BCSC’s decision, concluding that the appellants participated in a market manipulation scheme. It ruled that the BCSC had territorial jurisdiction, as the manipulation involved a British Columbia issuer and affected local markets.

Conclusion and Costs:
The appeal was dismissed, and the court awarded costs in favor of the British Columbia Securities Commission. The exact amount of costs or awards was not specified in the document.