This month’s edition of the Enforcement Roundup covers a British Columbia Securities Commission (BCSC) enforcement decision, a sanctions decision, a BCSC panel findings decision. We also cover a settlement agreement and findings decision from the Mutual Fund Dealers Association of Canada (MFDA).
On November 1, the BCSC applied to the Supreme Court of British Columbia for an order appointing an interim receiver to preserve and protect any assets of the Vancouver based Einstein Exchange. The Court granted the application and appointed Grant Thornton Limited as interim receiver. On November 18, Grant Thornton Limited was discharged as interim receiver.
The BCSC has not authorized any crypto-asset trading platforms to operate as an exchange. The BCSC, along with other Canadian securities regulators, continues to urge Canadians to exercise caution when buying or selling any crypto-assets due to various risks, including the loss of some or all of their investment.
For more information read the full news release and visit Grant Thornton’s website at https://www.grantthornton.ca/service/advisory/creditor-updates/#Einstein-Exchange-Inc.
BCSC Sanctions Decision
The BCSC imposed $55,000 in financial sanctions on BC residents Hall, Sanders and Eugster, who caused ecoTECH to breach a cease trade order and make misrepresentations to investors.
As a result of their misconduct, Hall and Sanders were each ordered to pay administrative sanctions of $20,000, and Eugster was ordered to pay $15,000.
Hall and Sanders are prohibited for five years, and Eugster is prohibited for four years from various securities market activities.
The panel did not order any financial sanctions against the company because doing so would “indirectly harm investors who have already been harmed by the misconduct in this case.” The securities of ecoTECH are still subject to a cease trade order.
View the news release for more details on the sanctions decision.
A panel has found that BC resident Bezzasso and two BC companies, Bezzaz and Nexus, committed fraud against investors through a Ponzi scheme. Bezzasso raised approximately $5 million from 85 investors.
The panel also found that Liao committed fraud against one investor by failing to tell the investor about repayment problems that other investors were experiencing in the Ponzi scheme.
The panel will impose sanctions after considering submissions from BCSC staff and the respondents.
View the news release for full information on the findings.
MFDA Settlement Agreement
In the settlement agreement, Allan admitted that he contravened an MFDA rule, while conducting business in the Nanaimo, BC area.
The MFDA Hearing Panel fined Allan $13,000 and ordered $2,500 in costs. He was also ordered to comply with the rule he contravened.
View the news release for full details on the settlement agreement.
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.
In March, the BC Securities Commission (BCSC) issued three enforcement decisions and one settlement agreement. The Investment Industry Regulatory Organization of Canada (IIROC) released one settlement agreement relating to a BC resident. The Mutual Fund Dealers Association (MFDA) did not release any decisions or settlement agreements during March relating to BC residents. You can find […]