Enforcement Roundup – December 2020

December’s edition of the Enforcement Roundup includes one British Columbia Securities Commission (BCSC) finding, one Nevada Supreme Court decision linked to BCSC enforcement actions, and one reasons for decision from the Mutual Fund Dealers Association of Canada (MFDA).

BCSC Enforcement

Nevada Supreme Court Upholding

Michael Lathigee

The Nevada Supreme Court upheld the BCSC’s effort to collect $21.7 million from Lathigee, which gives the BCSC the right to pursue his assets in the state.

In 2014, a BCSC panel found that Lathigee, a former Vancouver resident who moved to Las Vegas, fraudulently raised millions of dollars from investors without telling them about the financial condition of companies he controlled. He also used the money to make loans to related companies, instead of investing the funds in foreclosures of residential properties.

Read the news release for full details.

News Release

BCSC Findings

Jing “Janet” Zhang, Hunter Wei-Shun Wang (aka Hunter Wei Shun Wang), FS Financial Strategies Inc. (FS)

A BCSC panel found that Zhang and Wang obstructed justice when they coached an investor to lie to a BCSC investigator. Zhang was the marketing director at FS, and Wang was a lead strategist.

As a result of their conduct, the panel found that both Wang and Zhang concealed or withheld, or attempted to conceal or withhold, information reasonably required for an investigation under the Securities Act.

The panel will impose sanctions after considering submissions from BCSC staff and the respondents

Read the news release for full details.

News Release

MFDA Enforcement

MFDA Reasons for Decision

Norman John Haines

An MFDA panel confirmed sanctions imposed on Haines, who conducted business in the Nanaimo, BC area. In particular, Haines has paid a $15,000 fine and $2,500 in costs. He must comply with the contravened rule.

Read the news release for full 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 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.

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Fraud Warning Signs

December's edition of the Enforcement Roundup summarizes enforcement activities in British Columbia taken by the BC Securities Commission (BCSC) and Mutual Fund Dealers Association of Canada (MFDA).

How to File a Complaint with the BCSC

December's edition of the Enforcement Roundup summarizes enforcement activities in British Columbia taken by the BC Securities Commission (BCSC) and Mutual Fund Dealers Association of Canada (MFDA).