Enforcement Roundup – November 2018
In this edition of the Enforcement Roundup, we cover two British Columbia Securities Commission (BCSC) sanctions decisions, a temporary order, and a findings decision. We also summarize a criminal enforcement matter.
A BCSC panel banned Castano from any involvement in securities transactions in response to a fraud that caused over $1.5 million of investor losses.
The reciprocal order by the BCSC panel requires that Castano resign from any position he holds as a director or officer of an issuer or registrant, and bars him from holding any such positions in the future. It also prohibits him from trading in or purchasing any securities or exchange contracts, managing or consulting in the securities markets, and engaging in investor relations activities.
A BCSC panel barred Chandran from the capital markets, in response to a finding by the Alberta Securities Commission that he had perpetrated a fraud involving various real estate projects.
The BCSC’s order requires that Chandran resign from any position he holds as a director or officer of an issuer or registrant, and bars him from holding any such positions in the future. He also is prohibited from trading in or purchasing any securities or exchange contracts, and from managing or consulting in the securities markets.
BCSC Criminal Enforcement
Dhanani was sentenced in Vancouver Provincial Court to a total of 36 months in jail for selling fraudulent investments and for other securities-related crimes.
Dhanani pleaded guilty to four counts of fraud over $5,000, and three offences under the BC Securities Act: disobeying a BCSC order against trading, failing to file a prospectus (a formal document that provides details of an investment), and misleading investors.
Dhanani also was ordered to pay a total of $194,568 in restitution to five victims, and provide a sample of his DNA. He will be on probation for a total of 36 months upon his release from prison.
BCSC Temporary Order
The Executive Director of the BCSC temporarily prohibited a group of purported consultants from buying or selling the securities of 11 companies listed on the Canadian Securities Exchange, alleging that they participated in a scheme that is abusive to the capital markets.
You can find current updates on this matter in the BCSC hearing file on our corporate website.
BCSC Findings Decisions
A BCSC panel found that Liu and two companies controlled by Liu (NuWealth Financial Group Inc. and CPFS Professional Financial Services Inc.) furthered trades in securities without being registered to do so under the BC Securities Act.
The panel directed the parties to make submissions on sanctions according to the schedule set out in the findings.
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 BCSC’s online complaint form.