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.
This version of the Enforcement Roundup contains four British Columbia Securities Commission (BCSC) enforcement decisions, as well as two Mutual Fund Dealers Association of Canada (MFDA) decisions.
You can find a summary of some of the recent matters below:
A BCSC panel sanctioned Wood for lying to regulators and acting contrary to the public interest.
For his misconduct, the panel ordered Wood to pay an administrative penalty of $30,000. He is prohibited, for one year, from becoming or acting as a registrant, and from acting in a management or consultative capacity in connection with the securities market.
A BCSC panel found that Hong Liang Zhong committed fraud, engaged in unregistered trading, and offered clients false guarantees to reimburse them for any losses. In its decision, the panel declined to make separate findings of fraud with respect to the Forex firms involved.
The panel will make its sanctions decisions at a later date.
A BCSC panel has dismissed fraud allegations against Carnes, the man who ran the “Alfred Little” financial blog. The panel also dismissed staff’s application for an order in the public interest.
In a settlement agreement with the BCSC, Williams has admitted that he engaged in an illegal distribution of securities. Williams acknowledged that by introducing investors to the Global Group of Companies, he breached securities laws related to registration and prospectus requirements.
Williams has agreed to pay to the BCSC $8,775 in respect of settlement of this matter, and is prohibited from BC’s capital markets for a period of two years.
An MFDA hearing panel imposed sanctions on Hounsome after she admitted that, she contravened an MFDA rule by obtaining, maintaining and using blank client account forms signed by clients to conduct business.
The panel prohibited Hounsome from conducting securities related business in any capacity while in the employ with any MFDA member for a period of six months, and she must pay costs in the amount of $2,500.
An MFDA hearing panel approved the settlement agreement between MFDA staff and Kujala. Kujala admitted that he used 27 partially completed, pre-signed Letters of Direction redemption requests to process transactions for eight clients.
Kujala was fined in the amount of $5,000, shall pay costs in the amount of $2,500, and is prohibited from acting as a branch manager or in any supervisory capacity for a member of the MFDA for a period of three months.
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).
Stay up to date with this monthly roundup