December’s edition of the Enforcement Roundup includes one British Columbia Securities Commission (BCSC) finding, one Nevada Supreme Court decision linked to BCSC enforcement actions, and one reasons for decision from the Mutual Fund Dealers Association of Canada (MFDA).
BCSC Enforcement
Nevada Supreme Court Upholding
The Nevada Supreme Court upheld the BCSC’s effort to collect $21.7 million from Lathigee, which gives the BCSC the right to pursue his assets in the state.
In 2014, a BCSC panel found that Lathigee, a former Vancouver resident who moved to Las Vegas, fraudulently raised millions of dollars from investors without telling them about the financial condition of companies he controlled. He also used the money to make loans to related companies, instead of investing the funds in foreclosures of residential properties.
Read the news release for full details.
BCSC Findings
A BCSC panel found that Zhang and Wang obstructed justice when they coached an investor to lie to a BCSC investigator. Zhang was the marketing director at FS, and Wang was a lead strategist.
As a result of their conduct, the panel found that both Wang and Zhang concealed or withheld, or attempted to conceal or withhold, information reasonably required for an investigation under the Securities Act.
The panel will impose sanctions after considering submissions from BCSC staff and the respondents
Read the news release for full details.
MFDA Enforcement
MFDA Reasons for Decision
An MFDA panel confirmed sanctions imposed on Haines, who conducted business in the Nanaimo, BC area. In particular, Haines has paid a $15,000 fine and $2,500 in costs. He must comply with the contravened rule.
Read the news release for full details.
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 the BCSC’s online complaint form.
InvestRight.org is the British Columbia Securities Commission’s investor education website. Subscribe to receive email updates from BCSC InvestRight.
