In September 2012, the BC Securities Commission issued one notice of hearing and announced a Supreme Court of Canada decision upholding a commission decision.  BCSC staff also added three companies to the Investment Caution List.

During September 2012, neither IIROC nor the MFDA released any decisions against registered individuals in BC.

Supreme Court of Canada Decision – Kegham Kevin Torudag 

The Supreme Court of Canada dismissed Kegham Kevin Torudag’s application for leave to appeal a November 2011 decision of the British Columbia Court of Appeal, which upheld a British Columbia Securities Commission decision that he engaged in illegal insider trading.

The Court of Appeal upheld the commission’s view that because the BCSC regulates the Venture Exchange, they can prosecute illegal insider trading on the Venture Exchange. In effect, anyone who trades on the Venture Exchange, regardless of their location, is subject to the Securities Act.

At the original hearing, Torudag claimed he was not subject to the BCSC’s jurisdiction or the Securities Act because he was not in BC when he conducted the trades. The panel disagreed.

More cases:

Notice of hearing: Jeffrey Karl Wiegel and Michael Jerome Knight

Investment Caution List – Ocean International Ltd., Manhattan Capital Corp., and Wealth Capital Corp.

On September 4, BCSC Staff added three names to the Investment Caution List that were temporarily cease traded by the Saskatchewan Financial Services Commission.

The SFSC issued the order against Ocean International Ltd., Manhattan Capital Corp., and Wealth International Corp., after receiving complaints from Saskatchewan residents who were solicited to invest with two of the companies.

The BCSC is also aware of one BC resident that Ocean International solicited to invest.

All three companies have the same office address and telephone number, and identical webpages. None of these three entities are registered in BC to trade in, or advise on, securities or exchange contracts.

We urge BC residents to exercise caution when dealing with firms that are not registered to trade in or advise in BC.

Send us your comments

If you like this post or have changes to suggest, let us know by sending in a comment.

Suggested Reading

Canadian financial literacy resources for youth

CRM2 Video Series: Buying and Selling Investments

Mutual Funds: Understanding Common Fees and Terms

More Resources

Orders sought against four individuals for advance fee scheme

The British Columbia Securities Commission’s executive director issued a hearing notice on May 24, 2011 seeking orders against James Dupree, Ian T. Ball, Stephen Armitage, and Peter B. Thompson alleging that they attempted to carry out an advanced fee scheme involving two B.C. shareholders of York-Rio Resources Inc. You can view the notice below. In […]

Use new CSA resources to “Check Before You Invest”

Investor Education Month is coming to a close, and we are encouraging investors to make use of free online investor education tools that can help with finding and working with a registered financial adviser. This month, the Canadian Securities Administrators added two new resources to its website to assist investors complete a background check and registration search – Check […]