Enforcement Roundup – July 2017
In this edition of the Enforcement Roundup, we cover two enforcement activities from the British Columbia Securities Commission (BCSC) and two settlement agreements from the Investment Industry Regulatory Organization of Canada (IIROC).
BCSC Settlement Agreement
In the settlement agreement, Boguski admitted to his responsibility for the deficient disclosure of two junior mineral exploration companies, Victory Resources Corporation and Sierra Iron Ore Corporation (now known as Crystal Lake Mining Corporation). Boguski was a BC resident during the relevant period and the president, CEO, and a director of Victory and Sierra. He is no longer the president, CEO, or a director of Victory but retains those positions at Crystal Lake.
Boguski undertakes to pay $20,000 in respect of settlement of this matter. He is also banned from acting as a director or officer of any issuer, with certain exceptions, until July 20, 2018, or the successful completion of a course on the requirements of NI 43-101, whichever is later.
BCSC Notice of Hearing
The Executive Director of the BCSC issued an amended notice of hearing alleging that Bakshi and SBC illegally distributed securities and alleging that Bakshi committed fraud. You will find more information in the hearing file.
IIROC Settlement Agreement
In the settlement agreement, Waddington admitted he entered orders that he did not intend to execute contrary to IIROC’s market integrity rules and policies.
Waddington agreed to pay a fine of $10,000 and costs of $1,000. He is suspended from approval in any capacity from August 1, 2017 to September 1, 2017.
In the settlement agreement, Movassaghi admitted that he forged a client’s signature and failed to report a potential conflict of interest. These actions are contrary to IIROC rules.
Movassaghi agreed to a fine of $27,500, costs of $2,500, and a prohibition from applying for registration in any capacity with IIROC for a period of eight months. He is also subject to a 12-month period of close supervision upon re-approval.
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.