Every month we release an Enforcement Roundup blog that highlights all of the notable securities law decisions related to BC residents in the previous month. We cover our completed regulatory cases and report on other self-regulatory organizations’ decisions when pertinent. From time-to-time, we also cover criminal cases related to our decisions or investigations.
This Enforcement Roundup contains two British Columbia Securities Commission (BCSC) enforcement decisions, a settlement agreement, and two notices of hearings. There is also one summary of an Investment Industry Regulatory Organization of Canada (IIROC) settlement agreement and one Mutual Fund Dealers Association of Canada (MFDA) settlement agreement.
In a settlement agreement with the BCSC, Alexander has admitted that he engaged in unregistered trading and an illegal distribution of securities.
The agreement states that Alexander was an investor in The Little Loan Shoppe, a Ponzi scheme masquerading as a payday loan business. Alexander formed two companies to serve as “feeders” into the Little Loan Shoppe and issued promissory notes to investors.
Alexander has agreed to pay to the BCSC $7,500 in respect of settlement of this matter, as well as the $20,000 obtained as a result of his misconduct. He is prohibited from trading in securities (with limited exceptions) for a period of three years.
A BCSC panel has sanctioned Robert Weicker for tipping, and his wife Amina Weicker, for insider trading.
In April 2015, the panel found that Robert Weicker was in a special relationship with Geo Minerals Ltd., when he informed his wife of material information that had not been generally disclosed regarding the acquisition of that company. Amina Weicker then used this information, prior to its public disclosure, to purchase securities of Geo. Her trading in Geo shares resulted in her earning a profit of approximately $40,000.
The panel ordered that Amina Weicker and Robert Weicker cease trading in, and are prohibited from purchasing, any securities or exchange contracts of any issuer with whom they are in a special relationship for two and three years, respectively. The panel ordered the couple, jointly and severally, pay the BCSC the profit gained from the misconduct. The panel also ordered that Amina Weicker pay an administrative penalty of $40,000 and Robert Weicker, $60,000.
A BCSC panel has found that HRG, Downie, and Mohan illegally distributed securities.
The panel found that the company breached securities laws concerning prospectus requirements when it distributed approximately $4 million in securities to 109 investors. Downie and Mohan were also found to have breached securities laws concerning prospectus requirements, Downie with respect to distributions to 22 investors for a total of $693,500, and Mohan with respect to distributions to 34 investors for a total of $1,709,850.
The panel also found that Downie and Mohan are liable for all of HRG’s illegal distributions. Downie is liable for the full $4 million raised, while Mohan is liable for $3.48 million raised. HRG was also found liable for ten Exempt Distribution Reports filed with the BCSC that were proven to have contained false information.
The panel directed the parties to make submissions on sanctions according the schedule set out in the findings.
An MFDA Hearing Panel approved the settlement agreement between Staff of the MFDA and Prueter. In the Settlement Agreement, Prueter admitted that between September 2003 and
February 2013, he had and continued in at least three other gainful occupations which were not disclosed to and approved by the Member, contrary to MFDA Rules.
Prueter has agreed to pay a fine in the amount of $10,000, pay costs in the amount of $2,500, and is prohibited from conducting securities related business for a period of 2 years.
An IIROC panel has accepted a Settlement Agreement, with sanctions, between IIROC staff and Gill.
Gill admitted that he was involved in the false endorsement of a client signature and misrepresentations regarding the holdings and activity in two client accounts.
Gill agreed to a fine in the amount of $30,000, a nine month suspension from registration with IIROC, close supervision for 12 months upon registration in any capacity with IIROC, and a requirement to successfully rewrite the Conduct and Practices Handbook exam prior to any re-registration with IIROC. Mr. Gill also agreed to pay costs in the amount of $2,500.
Access to more cases:
This month’s edition includes one BC Provincial Court decision resulting from a British Columbia Securities Commission (BCSC) criminal investigation, a BCSC settlement agreement, a BCSC order, and one enforcement action from the Investment Industry Regulatory Organization of Canada (IIROC). BCSC Criminal Enforcement Enna Keller Keller was sentenced to one year of probation, including 90 days […]