The January Enforcement Roundup features three enforcement actions, a Notice on the Availability of Funds, and an Investor Alert issued by the BC Securities Commission (BCSC). It also includes 16 new additions to the Investment Caution List.
BCSC Enforcement
BCSC Settlement Agreement
Matthew Herbert Calvert
A North Vancouver investment firm (Ascenta Finance Corp.) and two of its employees (Matthew Herbert Calvert and Tracy Anne Mabone) have paid a combined $55,000 for failing to ensure investments were suitable for clients.
Calvert admitted to recommending unsuitable investments to three investments between 2016 to 2019 while working at Ascenta as an exempt market dealer representative. Its Chief Compliance Officer, Mabone, also admitted to failing to maintain records demonstrating the firm’s compliance with suitability requirements during the same time period.
Read the news release for full details.
BCSC Orders & Decisions
Cherie Evangeline White and KingdomInvestments2015 Inc.
White, owner and CEO of KingdomInvestments2015 Inc. (previously known as KingdomRealty Inc. and Kingdom Investments Inc.), claimed to generate high returns from “fixing and flipping” and “buying and holding” properties.
A BC Securities Commission panel found that White and Kingdom fraudulently used approximately $176,000 of investor funds to repay other investors and pay back a personal loan from White’s stepfather. They also committed fraud when they raised an additional $100,000 from two investors without telling them that the company was defaulting on payments to other investors.
Read the news release for full details.
Alexander William Bridges (Alex Blackwell), Shane Douglas Harder-Toews, and Fraser Valley Hop Farms Inc.
The BC Securities Commission has ordered $1.1 million in financial sanctions and issued market bans for fraud and illegal distribution committed in connection to a Fraser Valley hops farming company.
Fraser Valley Hop Farms Inc. (FVHF) and Bridges – who controlled the company’s bank account – solicited investors and committed fraud when they spent nearly $500,000 of investor funds on expenses with no “potential legitimate use”, including personal use. Bridges and the company’s marketing director (Toews) also illegally distributed securities to investors when they sold shares without a prospectus – a formal document providing details of an investment.
Read the news release for full details.
BCSC Notice on the Availability of Funds
Paul Se Hui Oei, Canadian Manu Immigration & Financial Services Inc.
A BCSC panel has ordered the distribution of $69,887.85 to nine investors who were defrauded by Paul Se Hui Oei and Canadian Manu Immigration & Financial Services. In 2017, BCSC found that Oei and three companies he controlled committed fraud by raising $13.3 million for two start-up companies, but did not direct the funds toward start-up costs, as investors were told.
Read the news release for full details.
BCSC Investor Alert
Teton Collective
The BC Securities Commission is warning investors about a Utah-based company, Teton Collective, that has filed two deficient technical reports claiming large reserves of gold projects in BC and Arizona. The reports filed to not comply with national requirements as it provides no basis for dollar values assigned to projects, no supporting evidence for valid mineral resources or reserves, and are not authored by a qualified person.
Read the news release for full details.
BCSC Early Intervention
Investment Caution List
The BC Securities Commission’s Investment Caution List notifies British Columbians about unqualified investments and unregistered activity originating from outside of the province but accepts BC residents as clients.
Below are the January additions to our Investment Caution List:
BTC Bank Canada
BTC Bank Canada claims to be located in Vancouver, Canada and also claims to offer accounts for trading in forex, stocks, commodities, indices, and cryptocurrency.
TopMarkets
TopMarkets claims to be registered in Cyprus and claims to offer accounts for trading forex and derivatives in stocks, commodities, indices, and cryptocurrencies.
Lux Capitals
Lux Capitals claims to be located in Seychelles, United Kingdom, and Switzerland. It also claims to offer trading services in forex, commodities, stocks, indices, and cryptocurrencies.
Equithy
Equithy claims to be located in the United Kingdom and it also claims to offer trading services in commodities, indices, stocks, forex, and other financial instruments.
SuperCi
SuperCi claims to offer trading services in cryptocurrencies.
Cryvipa
Cryvipa claims to offer trading services in cryptocurrencies.
Abacus-coin.com
Abacus-coin.com claims to offer trading services in cryptocurrencies.
OKT
OKT claims to offer trading services in cryptocurrencies.
Altercoin
Altercoin claims to offer trading services in cryptocurrencies.
Gold Cryptocurrency Trading Platform
Gold Cryptocurrency Trading Platform claims to operate an online cryptocurrency trading platform and we are aware that it accepts BC residents as clients.
Aksel Invest
Aksel Invest claims to offer trading services in stocks, indices, forex, and commodities.
Forex-Crypto
Forex-Crypto claims to be located in Australia and the UK, and it also claims to offer accounts for trading in stocks, indexes, currencies, metals, oil and gas, and cryptocurrencies.
MZBit, Any, AnyCoin
MZBit (also known as “Any” or “AnyCoin”) claims to operate an online virtual asset and virtual asset derivative trading platform and we are aware that MZBit accepts BC residents as clients.
BeGlobalFund
BeGlobalFund claims to be located in Switzerland and it also claims to offer investment accounts and trading services in derivatives through its online platform.
DBG Markets
DBG Markets claims to operate an online cryptocurrency trading platform and we are aware that DBG Markets accepts BC residents as clients.
SMTcap.com
SMTcap.com claims to be located in Switzerland and also claims to offer brokerage, training, and account management services in currencies, commodities, indices, CFDs, and leveraged financial instruments.
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.
InvestRight.org is the BC Securities Commission’s investor education website. Subscribe to receive email updates from BCSC InvestRight.
