Enforcement Roundup – December 2019

In this month’s edition of the Enforcement Roundup we cover three BCSC settlement agreements. We also address two settlement agreements and one reasons for decision from the Mutual Fund Dealers Association of Canada (MFDA).

BCSC Settlement Agreements

George Boustani, Saad (also known as Sid) Hayek

The BCSC has reached settlement agreements with Boustani, who admitted to tipping, and Hayek, who admitted to insider trading.

Boustani has agreed to pay $70,000, and Hayek has agreed to pay $364,174 to the BCSC.

Both men are prohibited for two years from trading or purchasing any securities or exchange contracts of any issuer that they are in a “special relationship” with, as defined by the Securities Act.

Boustani and Hayek do not have a history of securities misconduct, and both admitted to their misconduct before the BCSC issued a Notice of Hearing.

Read the news release for more information on these settlement agreements.

NEWS RELEASE

 

Akash Patel, MX Gold

Patel, the former vice president of BC-based MX Gold, has agreed to pay $20,000 to the BCSC as part of a settlement agreement connected to inadequate disclosure of information.

Patel must take a course on the requirements of National Instrument 43-101, Standards of Disclosure for Mineral Projects. He is also banned for one year from being a director or officer of any reporting issuer, and from engaging in investor relations activities.

Read the news release for more details.

NEWS RELEASE

 

Robert Findlay, Simba Energy Inc. (now Simba Essel Energy Inc.), Essel Group Middle East

Findlay admitted to insider trading involving a Vancouver-based oil and gas exploration company.

Findlay has agreed to pay $20,000 to the BCSC as part of the settlement. He is also prohibited for one year from trading or purchasing any securities or exchange contract of any issuer with whom he is in a “special relationship” with, as defined by the Securities Act.

Click the link below for more information.

NEWS RELEASE

 

MFDA Settlement Agreements

Norman John Haines

In the settlement agreement, Haines admitted that he contravened an MFDA rule while conducting business in the Nanaimo, BC area.

Haines was fined $15,000 and ordered to pay $2,500 in costs. He must also comply with the MFDA rule he contravened.

View the news release for more information.

NEWS RELEASE

 

Hugo Donais

In the settlement agreement, Donais admitted that he contravened an MFDA rule while doing business in the Victoria, BC area.

The Hearing Panel ordered Donais to pay a fine of $2,500 as well as $2,500 in costs. He must also comply with the rule he contravened.

View the news release for full details.

NEWS RELEASE

 

MFDA Reasons for Decision

Mark Wagner

In its Decisions and Reasons, the Hearing Panel outlined its misconduct findings against Wagner, who conducted business in the Kelowna, BC area.

In particular, the panel found that Wagner contravened three MFDA rules. Wagner has been ordered to pay a $12,500 fine and $7,500 in costs.

Read the news release for more details.

NEWS RELEASE

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. Subscribe to receive email updates from BCSC InvestRight.

Suggested Reading

Enforcement Roundup - March 2019

Enforcement Roundup - May 2017

Enforcement Roundup - February 2019

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