In this edition of the Enforcement Roundup, we discuss one settlement agreement and two enforcement actions from the British Columbia Securities Commission (BCSC) and additions to the Investment Caution List. We also highlight one settlement agreement from the Mutual Fund Dealers Association (MFDA).
BCSC Enforcement Actions
Shaughnessy, a Vancouver man, who pleaded guilty to the Criminal Code offence of obtaining credit by false pretence or fraud has been given a three-month conditional sentence and must pay $29,000 in restitution to two couples.
Shaughnessy was sentenced to a three-month conditional sentence and ordered to pay $19,000 and $10,000, respectively, to members of two families who were his victims.
Shaughnessy will serve his conditional sentence under supervised house arrest in the community. He is prohibited from having contact with the victims and must not sell, promote, purchase, trade or distribute any securities, or engage in investor relations activities, among other conditions.
A BCSC panel ruled that Sand and Gulston, both of West Vancouver, and Achs, of North Vancouver, defrauded two investors of $600,000 in a scheme to manufacture and sell a new type of battery.
The panel further concluded that Gulston also violated the Securities Act by knowingly making false statements to sell securities to the two potential investors.
The panel directed the parties to make submissions on sanctions according to the schedule set out in the findings.
BCSC Settlement Agreement
Bearing and its then-CEO, Poirier, must pay a combined $35,000 in a settlement with the BCSC for not disclosing that an advertorial and multiple promotional social media posts were issued on the company’s behalf.
Under the settlement, Bearing must pay $25,000 to the BCSC and Poirier must pay $10,000.
MFDA Settlement Agreement
Song, who conducted business in the Richmond, B.C. area, admitted to contravening various MFDA rules. The contraventions took place between October 2017 and November 2019.
Song is suspended from acting as a branch manager or in any supervisory capacity for a Member of the MFDA for a period of four months. He must also pay a $9,000 fine, $5,000 in costs, successfully complete a course acceptable to the MFDA, and comply with the contravened MFDA rules in the future.
BCSC Early Intervention
Investment Caution List
The BCSC publishes an Investment Caution List to notify British Columbians about unqualified investments and unregistered activity originating from outside of the province that accept B.C. residents as clients.
Below are 17 additions to the Investment Caution List in August 2022.
Marketsxo claims to offer Contracts For Difference (CFD) trading in cryptocurrencies, forex, stocks, and commodities.
Genius Investment Group claims to offer CFD trading services in stocks, forex, commodities, indices, cryptocurrencies and other assets.
CREX24, Inc. claims to have offices in San Francisco, Malta, Hong Kong, Singapore, Japan and Korea. It also claims to offer an online cryptocurrency trading platform.
IcorpSecurities claims to offer accounts for CFD trading in forex, indices, commodities, shares and cryptocurrencies.
The Uptrend Center claims to offer CFD trading services in stocks, forex, commodities, indices, cryptocurrencies and other assets.
Blue Royal claims to offer CFD trading services in stocks, forex, commodities, indices, cryptocurrencies and other assets.
Raising Royalty claims to be located in New Zealand and it also claims to offer crypto trading services.
We recently became aware that NuGen Cryptocurrency promoted an initial coin offering of NuGen Coin, in which British Columbia residents can participate.
We recently became aware that Web3 Inv. promoted an initial coin offering of WEB3INU, in which British Columbia residents can participate.
Cryptos Circus claims to be located in Canada and it also claims to offer accounts for trading in commodities, stocks, forex, indices and cryptocurrencies.
BBanc claims to be located in the St. Vincent and the Grenadines and it also claims to offer accounts for trading in stocks, indices, forex, cryptocurrencies and commodities.
GoldTradeCoins claims to be an online cryptocurrency trading platform and we are aware that GoldTradeCoins accepts British Columbia residents as clients.
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 by e-mail at [email protected]. You can also file a complaint or submit a tip anonymously using the BCSC’s online complaint form.
Before you buy or sell an investment be sure to do your research. Understanding basic investing concepts, and researching the types of investments you are considering will go a long way in helping you meet your investing goals.
Looking to deepen your investment knowledge? This set of videos can help. Dive into investing concepts such as diversifying your portfolio, understanding investment fees, and common money management strategies.