Enforcement Roundup: August 2022

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

BCSC Enforcement Actions

Jeffrey Shaughnessy

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.

Read the news release for full details.

John Sand, Karol Achs, Jolyon Charles Christopher Gulston

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.

Read the news release for full details.

BCSC Settlement Agreement

Bearing Lithium Corp. (formerly Bearing Resources Ltd.) and Jeremy Arthur William Poirier

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.

Read the news release for full details.

MFDA Enforcement

MFDA Settlement Agreement

Jerry Song

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.

Read the news release for full details.

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

Marketsxo claims to offer Contracts For Difference (CFD) trading in cryptocurrencies, forex, stocks, and commodities.

Genius Investment Group

Genius Investment Group claims to offer CFD trading services in stocks, forex, commodities, indices, cryptocurrencies and other assets.

CREX24, Inc.

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

IcorpSecurities claims to offer accounts for CFD trading in forex, indices, commodities, shares and cryptocurrencies.

The Uptrend Center

The Uptrend Center claims to offer CFD trading services in stocks, forex, commodities, indices, cryptocurrencies and other assets.

Blue Royal

Blue Royal claims to offer CFD trading services in stocks, forex, commodities, indices, cryptocurrencies and other assets.

Raising Royalty

Raising Royalty claims to be located in New Zealand and it also claims to offer crypto trading services.

NuGen Cryptocurrency

We recently became aware that NuGen Cryptocurrency promoted an initial coin offering of NuGen Coin, in which British Columbia residents can participate.

Web3 Swap

We recently became aware that Web3 Inv. promoted an initial coin offering  of WEB3INU, in which British Columbia residents can participate.

Crypto Circus

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

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

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.

InvestRight.org is the BCSC’s investor education website. Subscribe to receive email updates from BCSC InvestRight.

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