In this edition of the Enforcement Roundup, we have two British Columbia Securities Commission (BCSC) panel decisions and one settlement agreement. We also highlight one Investment Industry Regulatory Organization of Canada (IIROC) settlement relevant to BC investors.
For details about a case, click on the name of the person that appears above the summary.
BCSC Panel Decisions
A BCSC panel permanently banned Davis and fined him $15,000 after finding he perpetrated a fraud.
In June 2016, the panel found that Davis, a Victoria, BC resident, committed fraud when he purported to sell an investor shares in a company that he did not own and instead used the investor’s money on personal expenses.
This news release outlines the BCSC panel’s findings.
A BCSC panel dismissed fraud allegations against Robert James Maddigan and a BC company – 0902395 B.C. Ltd.
In an amended notice of hearing, BCSC staff alleged that Maddigan, an Alberta resident, and 0902395 committed fraud by failing to deliver shares or return the money of two investors who had lent money to 0902395.
In its decision, the panel dismissed the fraud allegations, stating “There was no suggestion by the executive director, nor was there any evidence to show, that the debts repaid by the respondents ahead of their obligations to Investors A and B were anything other than bona fide legal obligations.” The panel also noted that the respondents’ “conduct lacks the requisite element of dishonesty for fraud.”
BCSC Settlement Agreement
In the settlement agreement, Verdmont admitted to trading securities on behalf of BC residents without being registered. Verdmont, an investment dealer based in Panama, filed for liquidation in January 2016 and is no longer operating.
Verdmont paid $350,000 to the BCSC in respect of settlement of this matter. Verdmont is also permanently banned from trading in or purchasing any securities and from engaging in investor relations activities.
IIROC Settlement Agreement
As part of the settlement agreement, Dahl admitted that he made unsuitable recommendations, failed to update material account information, and placed discretionary trades.
Dahl agreed to a fine of $35,000, a prohibition from applying for registration with IIROC for 12 months, successful completion of the Conduct and Practices Handbook course, and a 12-month period of close supervision upon re-approval. He also agreed to pay costs of $5,000.
Report a Concern
If you have any concerns about a person or company offering an investment opportunity, please contact BCSC Inquiries at 604-899-6854 or 1-800-373-6393 or through e-mail at [email protected]. You can also file a complaint or submit a tip anonymously using the BCSC’s online complaint form.
InvestRight.org is the British Columbia Securities Commission’s investor education website.
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. The […]
Every month we release an Enforcement Roundup. We cover British Columbia Securities Commission (BCSC) 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 seven BCSC enforcement decisions, one IIROC discipline decision, as well as one Mutual […]