BC Securities Enforcement Roundup – May 2013
In May 2013, the BCSC released two settlement agreements and four notices of hearing. Neither IIROC nor the MFDA released any decisions in May 2013 relating to BC residents
Below is a summary of a few of the May 2013 enforcement cases.
Scotia admitted in a settlement agreement that it traded securities of companies subject to BC cease trade orders or halt trade orders after it had received timely notification of the orders. Scotia conceded that it (or its predecessor) failed to identify and block execution of these trades for a variety of reasons.
Scotia self-reported many of the breaches, and cooperated with commission staff in their review of the company’s conduct. Scotia paid $65,000 to the BCSC.
Nagra admitted that he illegally sold securities in Saafnet Canada Inc., a company doing business as AlphaShield Co. Saafnet never made any filings with the BCSC and was unable to rely on exemptions in distributing securities to investors. Nagra introduced seven individuals to Saafnet and they invested over $450,000.
The settlement agreement noted that Nagra invested money himself and lost his entire investment. Nagra also voluntarily compensated two of the investors.
Nagra paid $7,500 to the BCSC and will take the officers and directors course within one year. Under the agreement, Nagra is banned, with limited exceptions, from BC’s capital market for five years.
Access to more cases
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