Enforcement Roundup – August 2017
In this edition of the Enforcement Roundup, we cover one British Columbia Securities Commission (BCSC) criminal investigation, two BCSC panel decisions, and one settlement agreement from the Mutual Fund Dealers Association of Canada (MFDA).
BCSC Criminal Enforcement
Mangat was arrested on August 5 by Vancouver Police following an investigation by the BCSC’s Criminal Investigations Branch. The warrant for Mangat’s arrest was issued in connection with fraud charges against Mangat under the Criminal Code.
Mangat is currently charged with two counts of fraud over $5,000 under the Criminal Code. On August 9, he was released on cash bail with a number of conditions. A trial date has yet to be set.
View the BCSC’s Criminal Enforcement webpage for updates.
BCSC Panel Decisions
A BCSC panel ordered monetary sanctions and temporary market bans against Cook for illegal distributions. His company, CBM Canada’s Best Mortgage Corp., also received temporary market bans.
For his misconduct, the panel ordered Cook to resign any positions he holds as a director or officer of an issuer or registrant, pay an administrative fine of $25,000, and a disgorgement of $218,500. He is also subject to several market bans.
The panel also ordered that CBM be prohibited from participating in BC’s capital markets for five years.
In April 2017, a BCSC panel found that between June and December 2010, Cook and CBM issued promissory notes to investors and, in doing so, engaged in illegal distributions.
A BCSC panel found Nickford perpetrated fraud on 13 investors.
The panel found that Nickford spent over $318,000 of the investors’ money on personal expenses unrelated to her business. In its decision, the panel stated, “The investors’ funds were put at risk when all the funds were not used for the purposes of the respondent’s business, LZWM, as intended. With the subsequent bankruptcy of the respondent and her business, the investors’ funds were lost.”
The panel directed the parties to make submissions on sanctions according to the schedule set out in the findings.
MFDA Settlement Agreement
In the settlement agreement, Wang admitted that between December 2014 and March 2015 she contravened various MFDA rules when dealing with a client.
For her misconduct, Wang is prohibited from conducting securities related business while in the employ of, or associated with, any MFDA member for six months. She must also pay a fine of $20,000, costs of $5,000, and comply with the MFDA rules she contravened.
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.