In this edition of the Enforcement Roundup, we discuss two enforcement decisions from the BC Securities Commission (BCSC) and additions to the Investment Caution List. We also highlight one sanction from the Investment Industry Regulatory Organization of Canada (IIROC) and one settlement agreement from Mutual Fund Dealers Association (MFDA).
BCSC Enforcement
BCSC Decision
A BCSC panel has upheld the Executive Director’s plan to seek denial of driving privileges for Oei after he requested a review of the decision.
The panel found that the Executive Director’s planned request to ICBC met the necessary conditions of the Securities Act, and that Oei failed to show how lack of a licence would significantly reduce his ability to repay the amounts he owes. The panel noted that Oei has not made any proposal for a payment plan.
Read the news release for full details.
BCSC Settlement Agreement
Norman George Wilfred Wareham, Bam Bam Resources Corp. (formerly New Point Exploration Corp.)
Wareham, a former director and chief financial officer of mining exploration company New Point Exploration Corp. (n.k.a Bam Bam Resources Corp.), has agreed to a suspension from market activities and has paid $10,000 to the BCSC for his role in the company’s misrepresentation in a news release and a misleading material change report.
Wareham, who lived in North Vancouver at the time of the violations, is prohibited for three years from becoming or acting as a director or officer of any reporting issuer, becoming or acting as a registrant or promoter, and advising or acting in a management or consultative capacity in the securities or derivatives markets.
Read the news release for full details.
IIROC Enforcement
IIROC Sanction
Ng was found to have engaged in fraudulent conduct with respect to loan financing, and to have failed to cooperate with enforcement staff who were conducting an investigation. As a result of the misconduct, Ng must pay a $5,000,000 fine and $194,000 in costs. Ng is also permanently banned from registration in any capacity.
The alleged violations occurred while Ng was a director, investor, executive, and registered representative with PI Financial Corp., and a director, executive, and registered representative with Chippingham Financial Group Limited. Ng is no longer a registrant with an IIROC-regulated firm.
Read the news release for full details.
MFDA Enforcement
MFDA Settlement Agreement
Liu, who conducted business in the Richmond, B.C. area, admitted that between October 2017 and April 2019, he obtained and possessed 14 pre-signed account forms in respect of eight clients, contrary to MFDA’s Standard of Conduct rule. In addition, between October 2017 and November 2019, he altered and used to process transactions on 27 account forms in respect of 20 clients by altering information on the account forms without having the client initial the alterations.
Liu must pay a fine of $20,000 and $5,000 in costs, and shall comply with the contravened rule in the future.
Read the news release for full 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 17 additions to the Investment Caution List in June 2022.
InvestXo claims to offer a variety of accounts for trading in cryptocurrency.
Aurora Coins claims to offer accounts for trading in stocks and cryptocurrencies.
Coiniswap claims to be located in Switzerland. It also claims to offer an online cryptocurrency trading platform.
Perfect Mining Trade claims to be located in the United States and it also claims to offer accounts for forex trading.
Farm Cloud Mining claims to offer investment contracts for bitcoin mining.
Chelsea Investments claims to be located in the United Kingdom and it also claims to offer accounts for trading in stocks, cryptocurrency, forex, indices and commodities.
24stockoptionstrade claims to be located in New York city and it also claims to offer investment plans for forex, stocks, indices and cryptocurrency trading.
TIO Markets Ltd. (doing business as TIOmarkets) claims to be registered in Saint Vincent and the Grenadines and it also claims to offer accounts for trading in forex, stocks, indices and commodities.
LiquiditySwap claims to be headquartered in Seychelles. It also claims to offer an online cryptocurrency trading platform.
Fine Investments claims to be located in the UK and it also claims to offer various types of managed cryptocurrency trading accounts.
Coinmining claims to offer investment plans for cryptocurrency trading.
HitBeat advertised on its website that they sell HitBeat shares online.
CCSMarkets claims to offer an online cryptocurrency trading platform.
VelocityTradeFX claims to be located in the United Kingdom and Canada. It claims to offer accounts for trading in forex, commodities, stocks, indices and cryptocurrencies.
Cedar Signals claims to be located in the United Kingdom and it also claims to offer investment packages for forex, stock and cryptocurrency trading.
Formonixasset claims to be incorporated in the Republic of the Marshall Islands and the United Kingdom. It claims to offer investment plans for forex and cryptocurrency trading.
Moxcoins claims to offer an online cryptocurrency trading platform.
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.
