BC Securities Enforcement Roundup and ICL
In September 2012, the BC Securities Commission issued one notice of hearing and announced a Supreme Court of Canada decision upholding a commission decision. BCSC staff also added three companies to the Investment Caution List.
During September 2012, neither IIROC nor the MFDA released any decisions against registered individuals in BC.
The Supreme Court of Canada dismissed Kegham Kevin Torudag’s application for leave to appeal a November 2011 decision of the British Columbia Court of Appeal, which upheld a British Columbia Securities Commission decision that he engaged in illegal insider trading.
The Court of Appeal upheld the commission’s view that because the BCSC regulates the Venture Exchange, they can prosecute illegal insider trading on the Venture Exchange. In effect, anyone who trades on the Venture Exchange, regardless of their location, is subject to the Securities Act.
At the original hearing, Torudag claimed he was not subject to the BCSC’s jurisdiction or the Securities Act because he was not in BC when he conducted the trades. The panel disagreed.
Investment Caution List – Ocean International Ltd., Manhattan Capital Corp., and Wealth Capital Corp.
On September 4, BCSC Staff added three names to the Investment Caution List that were temporarily cease traded by the Saskatchewan Financial Services Commission.
The SFSC issued the order against Ocean International Ltd., Manhattan Capital Corp., and Wealth International Corp., after receiving complaints from Saskatchewan residents who were solicited to invest with two of the companies.
The BCSC is also aware of one BC resident that Ocean International solicited to invest.
All three companies have the same office address and telephone number, and identical webpages. None of these three entities are registered in BC to trade in, or advise on, securities or exchange contracts.
We urge BC residents to exercise caution when dealing with firms that are not registered to trade in or advise in BC.
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