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 one British Columbia Securities Commission (BCSC) enforcement decision, and three notices of hearings.
A BCSC panel has fined and permanently banned Wharram from the province’s capital markets for fraud. The panel also ordered that the Falls, Deercrest, and West Karma be permanently cease-traded.
In its sanctions decision, the panel ordered Wharram to pay to the commission $517,500, the amount obtained as a result of his misconduct. Wharram, The Falls, Deercrest, and West Karma are jointly and severally liable for this amount. Wharram was also ordered to pay an administrative penalty of $500,000, and is permanently banned from BC’s capital markets.
Writing about the need for a significant fine for the purposes o deterrence, the panel wrote: In this case, the investor losses were significant. Wharram’s fraudulent misconduct was significant and repeatedly deceitful. As a consequence, it is necessary, for deterrence purposes, to order a significant administrative fine. Other market participants must know that significant financial sanctions will follow this type of misconduct.
For more information on the case, you can refer the Hearings section of the BCSC website.
Access to more cases:
In July, the BC Securities Commission (BCSC) issued seven notices of hearing and seven enforcement decisions. The Investment Industry Regulatory Organization of Canada (IIROC) released one enforcement decision and three settlement agreements relating to BC residents. The Mutual Fund Dealers Association (MFDA) did not release any decisions or settlement agreements during July relating to BC […]