In this edition of the Enforcement Roundup, we summarize two enforcement decisions from BC Securities Commission (BCSC) panels and highlight one notice of hearing. We also feature one Investor Industry Organization Regulatory of Canada (IIROC) settlement agreement.
For more details about a case, click on the name of person that appears above the summary.
BCSC Panel Decisions
A BCSC panel found that Lian, a US resident, and Keller, a BC resident, breached several securities laws, including perpetrating fraud when they raised US $3.2 million from investors by offering securities in a cease-traded company, Lexicon Building Systems Ltd., through a “Friends and Family Program” (FFP).
The panel found that Lian spent approximately US$2.4 million on matters unrelated to the investment, which among other deceitful acts by Lian, constituted fraud. The panel also found that Keller’s involvement with the FFP constituted fraud, stating that she “committed numerous acts of deceit and deception, the actus reus of fraud, against the participants in the FFP.”
The panel found that Lian, Keller, EagleMark Ventures, LLC, and Falcon Holdings, LLC breached various other securities laws, which are detailed in the decision and news release. The panel directed the parties to make submissions on sanctions according to the schedule set out in the findings.
A BCSC panel permanently banned Lau from BC’s capital markets after making findings for fraud against him earlier this year. The panel also ordered him to pay an administrative penalty of $85,000 and to pay back $37,266, the amount he received as a result of his misconduct.
The panel issued its findings decision against Lau in June 2016.
BCSC Notice of Hearing
The BCSC’s Executive Director issued a notice of hearing alleging that Oei and four companies that he controlled committed fraud.
IIROC Settlement Agreement
In the settlement agreement, Sawisky admitted that he failed to learn essential facts about two different clients and failed to ensure that securities held by, and recommended to, those clients were suitable for them.
As part of the agreement, Sawisky will pay a $10,000 fine. He also agreed that any future registration shall be subject to a one-year period of close supervision in addition to any supervision requirements imposed on new registrants. Finally, he must also successfully rewrite the exam based on the Conduct and Practices Handbook.
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 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 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 four British […]
In December, the BC Securities Commission (BCSC) issued two notices of hearing and one review of an Investment Industry Regulatory Organization of Canada (IIROC) panel decision. Neither the Mutual Fund Dealers Association of Canada (MFDA) nor IIROC issued any decisions or settlements relating to BC residents. You can find a summary of some of the […]