Enforcement Roundup: September 2021

The September 2021 edition of the Enforcement Roundup features findings and decisions relating to enforcement proceedings from the British Columbia Securities Commission (BCSC), the Mutual Fund Dealers Association of Canada (MFDA), and the Investment Industry Regulatory Organization of Canada (IIROC).

BCSC Enforcement

BCSC Findings

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

The BCSC panel has found that Huang, a B.C. resident, and two Richmond-based companies, Pegasus Pharmaceuticals Group Inc. and Careseng Cancer Institute Inc., illegally distributed securities.

The panel found that the BCSC’s Executive Director failed to prove allegations, outlined in a 2018 Amended Notice of Hearing, that Huang and Pegasus committed fraud. The panel dismissed those allegations.

The panel will consider imposing sanctions on Huang, Pegasus, and Careseng for illegal distribution after considering submissions from BCSC staff and the respondents.

Read the news release for full details.

News Release

MFDA Enforcement

MFDA Settlement Agreements

Kosal Sunkara

Sunkara, who conducted business out of the Vernon, B.C. area, admitted that he opened an account for a client and processed transactions in the client’s account without obtaining the client’s authorization, and recorded the client’s Know-Your-Client information without communicating with the client, contrary to the member’s policies and procedures and various MFDA Rules.

As a result, Sunkara must pay a $7,500 fine and $2,500 in costs, and comply with the contravened rules in the future.

Read the news release for full details.

News Release

IIROC Enforcement

IIROC Findings

Mohammad Movassaghi

A panel found that Movassaghi violated IIROC rules while he was a registered representative with the Vancouver branch of Harbourfront Wealth Management Inc., an IIROC-regulated firm. Movassaghi is no longer a registrant with an IIROC regulated firm.

A separate hearing will be held to determine the penalty to be imposed on Movassaghi.

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 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.

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Know Your Advisor

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

Investment Caution List

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