Enforcement Roundup: July 2021

The July 2021 edition of the Enforcement Roundup includes one enforcement decision from the British Columbia Securities Commission (BCSC) and three enforcement actions from the Mutual Fund Dealers Association of Canada (MFDA).

BCSC Enforcement

Sanctions

Donald Bergman, All Canadian Investment Corporation (ACIC)

The BCSC panel has found that Bergman and his mortgage investment corporation made misrepresentations and false or misleading statements in documents required to be filed 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 Settlement Agreements

Lucia Arruda

Arruda, who conducted business out of the Vancouver, BC area, admitted to violating the MFDA Rules: Compliance by Approved Persons, Standard of Conduct, “Know-Your-Client,” Discretionary Trading, and Member Responsibilities.

As part of the settlement, Arruda must pay a $12,000 fine and $2,500 in costs, and comply with the contravened rules in the future.

Read the news release for full details.

News Release

Tuomo Kostamo

Kostamo, who conducted business out of the Prince George, BC area, admitted to contravening the MFDA Rules: Compliance by Approved Persons, Standard of Conduct, “Know-Your-Client,” and Member Responsibilities.

As a result, Kostamo must pay a $15,000 fine and $5,000 in costs. He is also prohibited from conducting securities-related business in any capacity while in the employ of or associated with any MFDA Member for a period of five years and must comply with the contravened rules in the future.

Read the news release for full details.

News Release

MFDA Reasons for Decision

Jewel Henricks

An MFDA panel outlined its findings of misconduct and confirmed sanctions imposed on Henricks, who conducted business out of the Prince George, BC area. In particular, Henricks must pay a $50,000 fine and $10,000 in costs. He has been permanently prohibited from conducting securities-related business in any capacity while in the employ of or associated with a Member of the MFDA.

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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The Enforcement Roundup is a monthly summary of enforcement decisions in British Columbia taken by securities regulators.

Interview Your Advisor

The Enforcement Roundup is a monthly summary of enforcement decisions in British Columbia taken by securities regulators.