In November 2012, the British Columbia Securities Commission issued one sanction decision and one settlement agreement.  During November 2012, IIROC released one settlement agreement, one liability decision, and one decision rejecting allegations relating to BC registrants. The MFDA released one decision against a BC registrant last month.

 

We’ve included a summary of a few of the cases below.

 

BCSC Sanctions – Gibraltar Global Securities Inc.  

A British Columbia Securities Commission panel permanently banned Gibraltar from the province’s capital markets and fined Gibraltar $300,000. 

 

The panel found that Gibraltar, a company registered in the Bahamas, carried out trades and provided securities advice on behalf of BC residents without being registered in BC to do so.  The panel also found that Gibraltar’s continued refusal to provide information about BC residents who held accounts with Gibraltar made the company “unsuitable to engage in securities related activities in, or connected with, British Columbia”.

 

The panel declined to vary the freeze order that the BCSC issued in August 2011, at least until Gibraltar pays the administrative penalty.

 

BCSC Settlement Agreement – Sean Tan and Berkeley Coffee & Tea Inc. (Berkeley)  

Tan and Berkeley admitted in a settlement agreement that Berkeley illegally distributed securities in BC.  Tan, as CEO, president and sole director of Berkeley, agreed he was responsible for Berkeley’s violations of the Securities Act.

 

Tan agreed in the settlement agreement to pay $10,000 and to not act as a director or officer of any issuer or carry out investor relations activities on behalf of any issuer for a period of three years.  These prohibitions do not apply to Berkeley and a related company.

 

Under the terms of the settlement agreement, Berkeley must carry out any future capital raising activities through an exempt market dealer or registrant.

 

IIROC Settlement – Grupreet Pawar  

A hearing panel accepted a settlement agreement, with sanctions, between IIROC staff and Pawar.  Pawar consented to a permanent ban from registration in any capacity from IIROC.  He agreed to pay IIROC a fine of $80,000 and costs of $5,000.

 

Pawar admitted that he engaged in conduct unbecoming an IIROC member when he misappropriated $95,000 from four individuals.

 

Access to more cases 

 

SRO cases 

IIROC Liability Decision – David Hoang 

 

IIROC decision to dismiss allegations  

 

MFDA Liability and Sanctions Decision – Cheng Han Lee  

 

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