The April edition of the Enforcement Roundup includes two British Columbia Securities Commission (BCSC) enforcement actions, and two investor alerts. We also address an investor alert from the Canadian Securities Administrators (CSA), and one enforcement action from the Mutual Fund Dealers Association of Canada (MFDA).
BCSC Investor Alerts
The BCSC is warning the public to exercise extreme caution about aggressive promotion of companies with products or initiatives to detect, cure or treat COVID-19.
The BCSC is aware that Revive Therapeutics Inc., a B.C. reporting issuer, is currently being promoted in North America and Europe. The pharmaceutical company is based in Ontario and listed on the Canadian Securities Exchange. Watch the video below for full details.
The BCSC and the Alberta Securities Commission (ASC) are warning the public to exercise extreme caution about aggressive promotion of Crestview Exploration Inc., a BC gold mining company. Watch below for full details about this investor alert.
CSA Investor Alert
The CSA is warning the public about an entity falsely claiming to regulate derivatives in Canada.
The website of the so-called “Canadian Office of Derivative Trading” includes a number of fake claims, including that it regulates “the futures contract market in Vancouver” and that it oversees “all financial related activities of all business entities covered by this commission within British Columbia.” Watch the video below for more details.
BC Supreme Court Decision
The BC Supreme Court denied an attempt by the Poonians to be discharged from their bankruptcy, citing the millions of dollars they owe to the BCSC for past misconduct.
BC Supreme Court Master Bruce Elwood, in denying the Poonian’s discharge from bankruptcy, said Canada’s bankruptcy laws are not meant “to cleanse those who contravene the Securities Act of the fiscal consequences of their actions.”
Read the news release for more information.
Aik Guan “Frankie” Lim, Scott Thomas Low, Darrell Wayne Wiebe, FS Financial Strategies, FS Strategies Services, the “FS Group”
A BCSC panel ordered a group of companies in BC, Alberta and Ontario to pay a total of $32.8 million for making misrepresentations to hundreds of investors, illegally selling securities and unregistered trading.
The panel ordered Lim and Low to pay $2 million each, and forever banned them from BC’s investment markets. In addition, the panel ordered Wiebe to pay $75,000 and banned him from BC’s investment markets for at least 10 years.
Click the link below for more details.
Decision and Reasons
The hearing panel imposed three sanctions on Cheema, who conducted business in the Vancouver, BC area.
Cheema must pay a $25,000 fine and $7,000 in costs. Cheema is permanently prohibited from conducting securities-related business in capacity while employed or associated with any MFDA member. Read the news release for more.
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 one BCSC enforcement decision and one notice of hearing, as well as two […]