The December Enforcement Roundup contains information about four enforcement actions taken by the BC Securities Commission (BCSC) and two by the Canadian Investment Regulatory Organization (CIRO). There are also six new additions to the Investment Caution List.
BCSC Enforcement
BCSC Settlement Agreements
Multi-Metal Development Ltd. and Shaun Methven Dykes
A panel of the BCSC has found that a BC-based public mining company and its CEO made false or misleading statements in a report it filed.
In 2019, Multi-Metal filed a technical report that contained an electronic signature of a qualified person – a professional engineer – and listed him as an author. A qualified person must meet specific requirements for education, training and experience, and must consent to the filing of the technical report by a publicly traded company. The expert’s certification is intended to ensure the reliability of the scientific and technical information in the report.
Read the news release for full details.
A BC-based public company that provides chargers for electric vehicles has paid the BCSC $35,000 for committing misconduct related to investor relations activities and violating continuous disclosure requirements.
In 2023, Hypercharge Networks Corp. used Gold Standard Media LLC and several affiliated companies to conduct investor relations activities, which included preparing and sending 20 promotional email newsletters over a two-month period.
The BCSC would like to thank FINTRAC for its assistance with the case.
Read the news release for full details.
Novum AI Ltd. and Colin Federik Eggen
A Mission resident has paid $30,000 to the BCSC for making false or misleading statements, obstructing justice and unregistered trading in connection with his company.
Between 2022 and 2023, Novum AI traded in securities by entering into investment contracts with twelve people who invested about $480,000 total. All of the investors lost all of their money.
Read the news release for full details.
BCSC Sanctions
The BCSC has banned a man with ties to Vancouver from participating in the investment market for 15 years following his conviction for conspiracy to defraud investors of a Boston-based biomedical company.
Marco G. Babini pleaded guilty in U.S. federal court in 2023 to conspiracy to commit securities fraud and wire fraud, and was sentenced in 2024 to prison time equal to time already served (approximately two and a half months), about nine months of pre-sentencing home incarceration and post-sentencing supervised release, and a fine of $50,000.
Read the news release for full details.
CIRO Enforcement
CIRO Settlement Agreements
Hildebrandt, a Registered Representative with a Vancouver branch of PI Financial Corp., now Ventum Financial Corp., failed to make sufficient and reasonable or diligent inquiries in relation to client trading activity.
The following sanctions have been imposed:
- A prohibition from approval in any capacity in the securities industry for a period of three months
- Upon readmission to the securities industry:
- a 12-month period of strict supervision; and
- successful completion of the Code and Practices Handbook examination.
- Payment of a fine of $60,000;
- Disgorgement of proceeds from his misconduct in the amount of $12,372.55.
Additionally, Randy Hildebrandt is also required to pay costs in the amount of $50,000
Read the news release for full details.
Haywood Securities Inc. admitted it failed to adequately supervise end-of-day high/low close trades and high bid/low offer orders for issuers trading on the Canadian Securities Exchange.
Haywood Securities Inc. agreed to pay a fine of $100,000 and costs of $5,000.
Read the news release for full details.
BCSC Early Intervention
Our Investment Caution List notifies British Columbians about unqualified investments and unregistered activity originating outside the province but accepts BC residents as clients.
Below are the December additions to the Investment Caution List:
Report a Concern
If you have concerns about a person or company offering an investment opportunity, please contact the BCSC Contact Centre at 604-899-6854 or 1-800-373-6393 or by e-mail at [email protected]. You can also file a complaint using BCSC’s online complaint form.
If you have information relating to fraud or serious market misconduct, you can securely submit tips through our Whistleblower program. Qualified tips may be eligible for cash rewards up to $500,000.
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