This edition of the Enforcement Roundup summarizes enforcement proceedings from the BC Securities Commission (BCSC), the New Self-Regulatory Organization of Canada (New SRO), and additions to the Investment Caution List.
As of January 1, 2023, the New Self-Regulatory Organization of Canada (New SRO) consolidates the functions of the Investment Industry Regulatory Organization of Canada (IIROC) and the Mutual Fund Dealers Association of Canada (MFDA). Read more about it here.
BCSC Enforcement
BCSC Decisions
Christopher Uitvlugt, Next Level Investments
The BCSC has permanently banned a convicted fraudster Uitvlugt from participating in B.C.’s investment market.
Uitvlugt, whose last known residence was in Saanichton, B.C., pleaded guilty in Ontario in 2018 to one count of fraud over $5,000, one count of possession of property obtained by crime, and one count of conspiracy to commit fraud in relation to his role as CEO of Next Level Investments.
Read the news release for more details.
Frederick Langford Sharp
The BCSC has permanently banned West Vancouver lawyer Sharp from B.C.’s investment market, following a U.S. judgment against him for fraud and market manipulation.
Sharp, along with several others, was named by the U.S. Securities and Exchange Commission (SEC) as a defendant in a 2021 civil complaint in U.S. federal court. Sharp did not appear or participate in the civil proceeding, and in May 2022, the court entered a final judgment against him. He is also facing related criminal charges in U.S. federal court.
Although the BCSC provided Sharp the opportunity to be heard, he did not provide any evidence or submissions.
Read the news release for more details.
New SRO Enforcement
As of January 1, 2023, the New Self-Regulatory Organization of Canada (New SRO) consolidates the functions of the Investment Industry Regulatory Organization of Canada (IIROC) and the Mutual Fund Dealers Association of Canada (MFDA). Read more about it here.
New SRO Sanctions
Zinan Liu
Liu admitted that between May 2018 and February 2020, she contravened various MFDA rules while conducting business in Burnaby, B.C.
Liu was fined $15,000 and ordered to pay $5,000 in costs. She has been also prohibited from conducting securities-related business in any capacity while in the employ of, or in association with, any New SRO member for a period of two years, commencing January 23, 2023.
Read the news release for more details.
Jeffrey Rutledge
Rutledge was found to have misappropriated funds from client accounts and failed to cooperate with enforcement staff who were conducting an investigation. As a result, he must pay a fine of $2,468,974 and costs in the amount of $10,000. He was also permanently barred from approval in any capacity, and permanently barred from employment in any capacity by a regulated person.
The violations occurred while Rutledge was a registered representative with the Vancouver branch of PI Financial Corp., at the time an IIROC-regulated firm. Rutledge is no longer a registrant with a New SRO-regulated firm.
Read the news release for more details.
BCSC Early Intervention
Investment Caution List
The BCSC publishes an Investment Caution List to notify British Columbians about unqualified investments and unregistered activity originating from outside of the province that accept BC residents as clients.
Below are the February additions to the Investment Caution List.
Comovest
Comovest claims to be located in the United Kingdom and it also claims to offer accounts for trading in stocks, cryptocurrencies, commodities, indices, forex, metals, and NFTs.
YorkBit
YorkBit claims to have offices in Bulgaria and the United Kingdom, and it also claims to offer an online trading platform to let clients trade derivatives, where YorkBit acts as the broker.
Crypto-rocketsfx.com
Crypto-rocketsfx.com claims to be located in St. Vincent and the Grenadines and it also claims to offer investment plans for cryptocurrencies, forex, commodities, and stocks.
Diangel Group Limited
Diangel Group Limited claims to have offices in Canada, and it also claims to offer an online trading platform for trading in cryptocurrency. Diangel Group Limited also claims to offer brokerage accounts for various cryptocurrency investment products.
FXCR
FXCR claims to be located in the Marshall Islands and it also claims to offer accounts for trading in cryptocurrencies, forex, commodities, and other financial products.
Binanceup.com
Binanceup.com claims to offer an online trading platform to trade in cryptocurrencies.
Report a Concern
If you have any concerns about a person or company offering an investment opportunity, please contact 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 or submit a tip anonymously using the BCSC’s online complaint form.
InvestRight.org is the BCSC’s investor education website. Subscribe to receive email updates from BCSC InvestRight.
