BC Securities Enforcement Roundup – March 2015
Every month we release an Enforcement Roundup blog that highlights all of the notable securities law decisions relating to BC residents in the previous month. We cover our completed regulatory cases and report on other self-regulatory organization’s decisions when pertinent. From time-to-time, we will also cover criminal cases related to our decisions or investigations.
The March Enforcement Roundup contains four British Columbia Securities Commission (BCSC) enforcement decisions and two notices of hearings, as well as one Investment Industry Regulatory Organization of Canada (IIROC) sanctions decision relating to a BC resident.
You can find a summary of some of the recent matters below:
A BCSC panel fined McIntosh $30,000 for illegally advising an investor to purchase exempt securities. The panel also ordered that McIntosh be banned from participating in BC’s capital markets for ten years.
The panel ordered that McIntosh pay to the commission the $11,730 she earned in commissions as a result of her misconduct, as well as a fine of $30,000.
A BCSC panel has fined and ordered permanent bans against Lathigee and Pasquill for perpetrating frauds.
Lathigee was ordered to pay a $15 million administrative penalty to the commission, and is permanently banned from participating in BC’s capital markets. Pasquill was also ordered to pay a $15 million administrative penalty to the commission is permanently banned from participating in BC’s capital markets.
The panel also ordered Lathigee and Pasquill to disgorge to the commission $21.7 million obtained as a result of their misconduct.
A BCSC panel has fined five BC residents who were found to have perpetrated a market manipulation that led to a misleading appearance of trading activity in, or an artificial price for, shares in a company listed on the TSX Venture Exchange (TSX-V). The panel also permanently banned them from BC’s capital markets.
The panel also ordered that the respondents be jointly and severally liable to pay to the commission more than $7 million obtained as a result of their misconduct, as well as a range of administrative penalties.
In a settlement agreement with the BCSC, Thompson and Lowprofile Ventures Ltd. admitted that they illegally distributed securities.
For his misconduct, Thompson paid $5,000 to the BCSC, agreed to a three-year ban from acting as an officer or a director of any issuer except Lowprofile. He has also agreed to successfully complete two industry-related courses within year.
Following a disciplinary hearing, an IIROC panel found that Steer failed to learn essential facts about certain clients and their orders, and failed to properly act as a gatekeeper to the capital markets. The panel also found that Steer accepted instructions in client accounts from someone who was not authorized to give instructions.
The panel imposed the following penalties: A permanent ban from approval in any capacity with IIROC; a fine of $75,000; and disgorgement in the sum of $71,000. Steer is also required to pay costs in the amount of $10,000.
Access to more cases:
Please visit the Canadian Securities Administrators’ Disciplined Persons List for information relating to persons disciplined by provincial securities regulators, the Investment Industry Regulatory Organization of Canada (IIROC) and the Mutual Fund Dealers Association of Canada (MFDA).