Enforcement Roundup – October 2017
In this edition of the Enforcement Roundup, we cover two British Columbia Securities Commission (BCSC) criminal enforcement activities and two panel decisions. We also have one settlement agreement from the Investment Industry Regulatory Organization of Canada (IIROC).
BCSC Criminal Enforcement
Dhanani was arrested on October 2, 2017 with the assistance of Vancouver police following an investigation by the BCSC’s Criminal Investigations Branch.
He faces multiple charges under the Criminal Code, including fraud and theft in excess of $5,000. He also faces multiple charges under the Securities Act. Trial dates in these matters have yet to be set.
Information on the charges is available on the Criminal Enforcement page on the BCSC website.
Minnie was arrested by the Oceanside RCMP detachment in Parksville, BC, on October 16 following a BCSC investigation. He is currently in custody awaiting a bail hearing.
Minnie is charged under the Criminal Code with two counts of fraud over $5,000 and two counts of theft over $5,000.
The Quesnel, BC, detachment of the RCMP and the Victoria Police Department provided assistance to the BCSC during the investigation.
Additional information is available on the Criminal Enforcement page on the BCSC website.
BCSC Panel Decisions
A BCSC panel fined and permanently banned Lim and Mugford from BC’s capital markets for market manipulation.
The panel found that Lim and Mugford engaged in market manipulation by creating an artificial share price for a company called Urban Barns from November 2009 to February 2010.
For their misconduct, the panel ordered Lim and Mugford to resign any positions they hold as directors or officers of any issuer or registrant. Both are permanently banned from BC’s capital markets. Lim must pay the BCSC an $800,000 administrative penalty. Mugford must pay an administrative penalty of $375,000.
IIROC Settlement Agreement
In the settlement agreement, Dykeman admitted that he executed unauthorized discretionary trades in a client account.
He agreed to pay a fine of $10,000 and $1,500 in costs. Dykeman also rewrote the Conduct and Practices Handbook Course and was under strict supervision by his firm from July to December 2015 as part of his firm’s internal sanctions for this conduct..
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.
InvestRight.org is the British Columbia Securities Commission’s investor education website.