Enforcement Roundup: November 2021

In this edition of the Enforcement Roundup, we discuss enforcement activities from the British Columbia Securities Commission (BCSC) and additions to the Investment Caution List. We also highlight three settlement agreements from the Mutual Fund Dealers Association of Canada (MFDA) and one decision from the Investment Industry Regulatory Organization of Canada (IIROC).

BCSC Enforcement

BCSC Criminal Charges

Randolph Michael Rochefort

Rochefort is accused of committing five counts of fraud over $5,000 and three counts of theft over $5,000 under the Criminal Code relating to activity that allegedly took place in 2016.

Read the news release for full details.

News Release

BCSC Settlement Agreements

Jeffrey Dean Mushaluk

The BCSC panel has reached a settlement agreement with Mushaluk, who traded in securities and acted as an adviser without being registered.

As part of the settlement, Mushaluk has agreed to pay $50,000 to the BCSC, and is prohibited for 12 years from various securities-related activities.

Previously, Mushaluk was disciplined by the Mutual Funds Dealers Association, a self-regulatory organization, because he acted outside his mutual funds registration.

Read the news release for full details.

News Release

BCSC Decisions

Earle Douglas Pasquill

A preservation order imposed by the BCSC against Earle Douglas Pasquill in 2020 has been revoked by the British Columbia Court of Appeal.

The preservation order prevented Pasquill, who owes the BCSC $36.7 million, from withdrawing or transferring funds from two life income fund (LIF) accounts, totaling $644,951 as of April 2020. 

The Court of Appeal agreed with Pasquill’s argument that the Pension Benefits Standards Act (PBSA) exempts his LIF accounts from the preservation order. 

Read the news release for full details.

News Release

MFDA Enforcement

MFDA Settlement Agreements

Alim Kassam

Kassam, who conducted business out of the Abbotsford, BC area, admitted that between November 8, 2018 and December 2018, in his capacity as a branch manager, he violated various MFDA rules, policies, and procedures.

The Hearing Panel ordered Kassam to pay a $5,000 fine and $5,000 in costs. He is also prohibited from acting as a branch manager or in any supervisory capacity for a member of the MFDA for a period of six months. He shall successfully complete the branch manager’s course that is acceptable to staff of the MFDA prior to acting as a branch manager in the future.

Read the news release for full details.

News Release

Ronald Armstrong

Armstrong admitted that he violated the MFDA’s Standard of Conduct rule. He conducted business in the Kamloops, BC area.

As a result, Armstrong must pay a $12,000 fine, $2,500 in costs, and shall comply with the contravened rule in the future.

Read the news release for full details.

News Release

Laura Monteiro

In the settlement agreement, Monteiro admitted that she violated various MFDA rules while doing business in the Vancouver, BC area.

Monteiro has been suspended from conducting securities-related business in any capacity while in the employ of or associated with any member of the MFDA for a period of one month. She must pay a $20,000 fine, $5,000 in costs; and shall comply with the contravened rules in the future.

Read the news release for full details.

News Release

IIROC Enforcement

IIROC Decisions

Dwight Cameron Mann

The BCSC has reviewed the IIROC panel sanction decision dated November 21, 2020, in the matter of Dwight Cameron Mann.

The BCSC confirmed the sanction imposed by the IIROC panel and dismissed the application for a hearing and review brought by IIROC Staff.

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 the promotion of unqualified investments and unregistered activity originating from outside of the province. The BCSC also lists businesses connected, or purporting to be connected, to BC that have solicited investors in other jurisdictions to purchase unqualified investments.  

 Below are the November additions to the Investment Caution List.

Stock BTC Trade claims to offer investment services in cryptocurrency.

Crypto Springs claims to be based in Vancouver, Canada and it claims to offer investment plans with different rates of return.

ZBG claims to offer an online cryptocurrency trading platform and we are aware that ZBG accepts British Columbia (BC) residents as clients.

HKEx claims to offer an online cryptocurrency trading platform and we are aware that HKEx accepts British Columbia (BC) residents as clients.

ATBCrypto claims to offer trading services for CFD on currency pairs, stocks, commodities, indices and cryptocurrencies.

ProFXGroup claims to have offices in London, England and it also claims to offer trading services in currencies, futures and commodities.

Coindate claims to offer an online cryptocurrency trading platform and we are aware that Coindate accepts British Columbia (BC) residents as clients.

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.

InvestRight.org is the British Columbia Securities Commission’s investor education website. Subscribe to receive email updates from BCSC InvestRight.

Suggested Reading

Enforcement Roundup: October 2021

Investment Caution List: 44 New Additions

Beware of Crypto Scams on Social Media and Dating Sites

More Resources

Know Your Advisor

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

Research an Investment Offer

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