BCSC Enforcement Roundup – January 2015

BCSC Enforcement Roundup – January 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.

Our January Enforcement Roundup contains four British Columbia Securities Commission (BCSC) enforcement decisions and one notice of hearing, as well as one Mutual Fund Dealers Association of Canada (MFDA) decision relating to a BC resident.

You can find a summary of some of the recent matters below:

BCSC Sanctions Decision – Rashida Samji

A BCSC panel fined Rashida Samji $33 million for committing a $100 million fraud on at least 200 investors. The panel also permanently banned Samji from participating in BC’s capital markets. In addition, the panel ordered Samji to pay the BCSC more than $10.8 million, the difference between the money raised and the amounts paid out to investors.

The panel imposed these sanctions after determining that Samji ran a Ponzi scheme.

BCSC Sanctions Decision – Colin Robert Hugh McCabe and Erwin Thomas Speckert

A BCSC panel fined and permanently banned Colin Robert Hugh McCabe for making misrepresentations and other misleading statements when promoting three companies traded on the Over-the-Counter-Bulletin-Board in the United States. McCabe was ordered to pay the BCSC the nearly $2.8 million obtained as a result of his misconduct, as well as a fine of $1.5 million.

The panel also sanctioned Erwin Thomas Speckert for facilitating secret payments to McCabe, and knowingly concealing the relationship between McCabe and the third parties behind the payments. Speckert is prohibited from participating in BC’s capital markets for five years.

BCSC Liability Decision – Douglas William Falconer Wood

A BCSC panel has found that Douglas William Falconer Wood, a BC resident and registered broker during the relevant period, repeatedly traded in securities that were on his employer’s restricted list, set up an offshore trading structure to conceal his trading activity, and lied to staff from the BCSC and IIROC.

The BCSC panel will make its sanctions decision at a later date.

BCSC Liability Decision – Mark Aaron McLeary, Robert Hainey, and Jerry Williams

A BCSC panel found that Mark Aaron McLeary, Robert Hainey, and Jerry Williams engaged in market manipulation of shares in Sungro Minerals Corp., a Nevada corporation that had its head office in Surrey, BC.

The panel also found that McLeary made false or misleading statements to BCSC staff about a payment he received that the panel found were proceeds of the manipulation. Allegations against Timothy John McLeary and Erik John Benson, who were also named in the notice of hearing, were dismissed by the panel.

The BCSC panel will make its sanctions decision at a later date.

MFDA Penalties and Costs – Michael Breuer

An MFDA panel sanctioned Michael Breuer for engaging in personal financial dealings with a client, engaging in unauthorized discretionary trading, engaging in conduct unbecoming an Approved Person, and failing to cooperate with the MFDA investigation.

The panel imposed a permanent prohibition on the authority of the Respondent to conduct securities related business in any capacity while in the employ of or associated with any MFDA member, a fine in the amount of $150,000, and costs in the amount of $7,500.

Access to more cases:

BCSC

Notice of Hearing – Robert James Maddigan

 

Stay informed:

Follow us on Twitter and Facebook to keep up to date on British Columbia’s securities news and alerts.

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).

Watch our social media channels for updates to the BCSC’s Investment Caution List as well as updates to CSA’s Investor Alert database that affect British Columbia investors.