BC Securities Enforcement Roundup – June 2015

BC Securities Enforcement Roundup – June 2015

Every month we release an Enforcement Roundup blog that highlights all of the notable securities law decisions related to BC residents in the previous month. We cover our completed regulatory cases and report on other self-regulatory organizations’ decisions when pertinent. From time-to-time, we also cover criminal cases related to our decisions or investigations.

This version of the Enforcement Roundup contains two British Columbia Securities Commission (BCSC) enforcement decisions, a settlement agreement, and two notice of hearings. There is also one summary of a Mutual Fund Dealers Association of Canada (MFDA) settlement agreement.

BCSC Liability and Sanctions Decision: Noshad Dowlati

A BCSC panel fined and permanently banned Dowlati from the province’s capital markets for fraud and trading and advising without registration. In addition to the permanent market bans, the panel ordered Dowlati pay to the commission the $14,050 obtained as a result of his misconduct, as well as an administrative penalty of $30,000.

BCSC Settlement Agreement: Peter R. Kellogg and IAT Reinsurance Company Ltd.

In a settlement agreement with the BCSC’s Executive Director, Kellogg and IAT Reinsurance Company Ltd. admitted that they failed to file required insider reports with the BCSC disclosing their beneficial ownership or control of, and transactions in, the shares of MFC Industrial Ltd. For his misconduct, Kellogg and IAT jointly paid $25,000 to the BCSC.

BCSC Liability Decision: Raymond Michael Roger Sasseville, Edith Marie Sasseville, and Richard Keller

A BCSC panel found that Wireless Wizard Technologies Inc., Raymond and Edith Sasseville, and Richard Keller illegally distributed securities. The panel will make its sanctions decisions at a later date.

MFDA Settlement Agreement: Kenneth Karasick

An MFDA hearing panel approved the settlement agreement between MFDA staff and Karasick. In the agreement, Karasick admitted to contravening various MFDA rules by:

  • accepting and holding a power of attorney from a client in favour of himself;
  • not ensuring that the conflict of interest which arose upon his designated as a beneficiary of a client’s in-trust account was addressed by the exercise of responsible business judgement influenced only by the best interest of the client; and
  • accepting a monetary gift of $309,475 from a client.

In addition, Karasick misled his firm by falsely answering some of the question on the firm’s Annual Consultant Certifications which interfered with his firm’s ability to supervise his conduct and comply with its obligations under MFDA rules. Karasick was fined $10,000, paid costs of $2,500, and is prohibited from conducting securities related business in any capacity for a MFDA member for one year.

Access to more cases:

BCSC

Notice of Hearing – Teresa Kathleen de La Boursodière

Notice of Hearing – Brent Glen Jardine