Enforcement Roundup – March 2020

March’s edition of the Enforcement Roundup includes two British Columbia Securities Commission (BCSC) settlement agreements, and one investor alert. We also address an investor alert from the Canadian Securities Administrators (CSA), one settlement agreement from the Mutual Fund Dealers Association of Canada (MFDA), and one settlement agreement from the Investment Industry Regulatory Organization of Canada (IIROC).

 

Investor Alerts

BCSC Investor Alert

Warning About Working From Home During COVID-19 Crisis

The BCSC is warning the public about potentially fraudulent ads by companies offering opportunities to work from home as securities traders during the COVID-19 pandemic.

Click below to read the full details about the investor alert.

Investor Alert

CSA Investor Alert

Canadian Securities Regulators Warn Public of Coronavirus-Related Scams

The CSA  is warning investors about companies claiming to have products or services that will prevent, detect or cure coronavirus (COVID-19) infection.

A common way they do this is through pump-and-dump schemes involving publicly traded small “shell” companies.

Learn more about this investor alert by clicking below.

Investor Alert

 

BCSC Enforcement

Settlement Agreements

Narinder Paul Singh Bains, Firethorn Partners LLC

The BCSC has reached a settlement agreement with Bains and his company Firethorn, for unregistered activity and making a false or misleading statement.

As part of the settlement, Bains has agreed to pay $20,000, and Firethorn has agreed to pay $10,000, to the BCSC.

Neither Bains nor Firethorn has a history of regulatory misconduct in Canada and both admitted to their misconduct before the BCSC issued a Notice of Hearing.

Read the news release for more details.

News Release

 

Robert Logan Dunn, Mosaic Holdings Inc., Forum National Investments Ltd.

The BCSC has reached a settlement agreement with Dunn and his former B.C. company for market manipulation.

Dunn has agreed to pay $35,000 to the BCSC. He is also prohibited for five years from various securities market activities.

Read the full news release for more details.

NEWS RELEASE

 

IIROC Enforcement

Settlement Agreement

Zubin Justin Driver

As part of the settlement agreement, Driver admitted  that he accepted trading instructions without written authorization from the client of an account and that he failed to disclose confidential information about a security to his firm before trading it. The violations occurred while he was a registered representative in Vancouver.

Driver agreed to pay a $20,000 fine, and $1,500 in costs. He has also been suspended from approval in any capacity for 30 days, beginning March 9, 2020.

View the news release for more details.

NEWS RELEASE

 

MFDA Enforcement

Settlement Agreement

Inocencia Minervia

In the settlement agreement, Minervia admitted to contravening an MFDA rule  while conducting business in the Maple Ridge, B.C. area.

An MFDA Hearing Panel imposed sanctions on Minervia, including a $1,000 fine and $2,500 in costs. Minervia must also comply with the rule she contravened.

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 inqui[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.

Suggested Reading

Enforcement Roundup – July/August 2016

B.C. Securities Commission releases 2014 Enforcement Report

BC Securities Enforcement Roundup – July 2015

More Resources

Enforcement Roundup – August 2017

Read the latest from the BCSC

Enforcement Roundup – March 2019

Read the latest from BCSC Enforcement