Enforcement Roundup: May 2022

In this edition of the Enforcement Roundup, we discuss one enforcement decision from the British Columbia Securities Commission (BCSC) and additions to the BCSC’s Investment Caution List. We also highlight one enforcement decision from the Investment Industry Regulatory Organization of Canada (IIROC).

BCSC Enforcement

BCSC Order

Winter Huang (a.k.a. Dong Huang), Pegasus Pharmaceuticals Group Inc., Careseng Cancer Institute Inc.

A BCSC panel has ordered Huang to pay a $500,000 administrative penalty and banned him from various market activities after finding that he and two Richmond-based companies – Pegasus Pharmaceuticals Group Inc. and Careseng Cancer Institute Inc. – illegally distributed securities.

The panel also banned both companies from trading in or purchasing any securities or derivatives, and from engaging in promotional activities. Pegasus was banned for 10 years and Careseng for eight years.

Huang must resign any position he holds as a director or officer of an issuer or registrant. He is banned from market activities for at least 10 years and will remain banned until he pays the administrative penalty.

Read the news release for full details.

News Release

IIROC Enforcement

IIROC Settlement Agreements

Lyle Langlois and James Brown

Langlois and Brown admitted that between 2014 and 2016 while they were registered representatives at Scotia Capital operating as Langlois Brown Wealth Management they accepted money payments from a mutual fund dealer, contrary to the IIROC rule.

Langlois and Brown agreed to each pay a fine of $10,000 and costs totaling $5,000 for both of them. In addition, they together agreed to pay an additional fine of $65, 571.44 as a disgorgement. 

The conduct occurred while the respondents were registered representatives with the Vancouver sub-branch of Scotia Capital Inc., an IIROC-regulated firm. Langlois and Brown are still within the industry in a registered capacity, at the Vancouver sub-branch of iA Private Wealth Inc.

Read the news release for full details.

News Release

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 BC residents as clients.

Below are the May 2022 additions to the Investment Caution List.

SenseTrade claims to be located in the Commonwealth of Dominica and it also claims to offer accounts for trading in forex, indices, stocks and commodities.

FCS Markets claims to be located in the United Kingdom and it also claims to offer accounts for trading in CFDs on forex, commodities, cryptocurrencies, ETFs and binary options.

SafeCryptoWorld claims to be located in the United Kingdom and it also claims to offer accounts for trading in forex, cryptocurrencies, commodities, stocks and indices.

RelyCoin claims to offer an online cryptocurrency trading platform.

Palo Traders claims to be located in the United Kingdom and the Netherlands. It also claims to offer accounts for trading in CFDs on forex, commodities, indices, stocks and cryptocurrencies.

SwisTrust claims to be located in St. Vincent and the Grenadines and it also claims to offer accounts for trading in forex, indices, stocks, and commodities.

TheFinancialCentre claims to offer accounts for trading in CFDs on forex, indices, stocks, cryptocurrencies and commodities.

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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