Every month we release an Enforcement Roundup blog that highlights all of the notable securities law decisions relating to BC residents in the previous month. We cover our completed regulatory cases and report on other self-regulatory organization’s decisions when pertinent. From time-to-time, we will also cover criminal cases related to our decisions or investigations.
Our February Enforcement Roundup contains three British Columbia Securities Commission (BCSC) enforcement decisions, one Mutual Fund Dealers Association of Canada (MFDA) decision, and one Investment Industry Regulatory Organization of Canada (IIROC) settlement agreement relating to a BC resident.
You can find a summary of some of the recent matters below:
A BCSC panel has fined and ordered bans against two real estate developers for illegally distributing securities. Knight was ordered to pay a $300,000 administrative penalty, and is permanently banned from participating in BC’s capital markets. Wiegel was ordered to pay a $100,000 administrative penalty, and is banned from participating in BC’s capital markets for ten years. The panel also ordered the respondents (except Almaval) to pay over $3.5 million to the commission for monies obtained as a result of their misconduct.
The panel imposed these sanctions after finding in September 2014 that the respondents sold securities without a prospectus and without being registered.
In a settlement agreement with the BCSC, Protokinetix and Senior have admitted to breaching a cease trade order (CTO) by distributing securities to 14 individuals and 2 companies for payment of services and repayment of loans valued at approximately $360,000, as well as an existing shareholder and current director for cash proceeds of $100,000.
Senior is prohibited from becoming or acting as a director or officer of any reporting issuer other than Protokinetix for a period of one year. Senior and Protokinetix agreed to jointly pay $10,000 to the BCSC. Senior has also agreed to successfully complete a course on the duites and responsibilities of corporate officers and directors within one year of the date of the settlement agreement.
A BCSC panel has found that Wharram and three companies for which he is a director and president committed fraud.
The BCSC panel will make its sanctions decisions at a later date.
An IIROC Hearing Panel accepted a Settlement Agreement with Kotar, who admitted that he opened and maintained a brokerage account outside of his firm without the knowledge or approval of his firm. Kotar agreed to pay a fine of $20,000 and to re-write the Conduct and Practices Handbook course prior to any registration with IIROC. Kotar also agreed to pay costs in the amount of $2,500.
Access to more cases:
Please visit the Canadian Securities Administrators’ Disciplined Persons List for information relating to persons disciplined by provincial securities regulators, the Investment Industry Regulatory Organization of Canada (IIROC) and the Mutual Fund Dealers Association of Canada (MFDA).
In November, the BC Securities Commission (BCSC) issued one settlement agreement, four enforcement decisions, and one notice of hearing. The Mutual Fund Dealers Association of Canada (MFDA) issued one decision relating to a BC resident. The Investment Industry Regulatory Organization of Canada (IIROC) accepted one settlement agreement relating to BC residents. You can find a […]