The June edition of the Enforcement Roundup covers recent enforcement news from the BC Securities Commission (BCSC) and the Canadian Investment Regulatory Organization (CIRO), formerly known as the New Self-Regulatory Organization of Canada (New SRO). It also includes eight new additions to the Investment Caution List.
The former CEO (Dawson) and former CFO (Alexander) of a Vancouver-based investment company Block Technologies Inc. (BLOK), have separately agreed to suspensions from participating in the investment market for misrepresenting that the company would only retain a small portion of funds raised through a private placement.
Alexander, who lived in North Vancouver at the time of the misconduct, will pay $25,000 to the BCSC as part of the settlement. Dawson, who lived in Vancouver at the time, is not able to pay a financial sanction that would normally be part of a settlement. BLOK, whose shares are traded on the Canadian Securities Exchange, is in the process of being dissolved.
Fielder, who was convicted and sentenced for theft in 2014, has been banned from multiple investment market activities for 20 years.
The panel said the orders were warranted, in part, because Fielder has raised funds from investors since his criminal conviction “and that suggests some continuing risk to the public.”
Zhang has been temporarily banned from participating in the investment market after several delays in holding a hearing for allegations that she defrauded investors.
The panel said that upon initial examination, sufficient evidence appears to support the allegations, and a suspension from market activity is in the public interest because her participation in the market poses a risk to investors and to investor confidence in the integrity of the market. In addition, the panel said Zhang has ceased to be cooperative in responding to communications from the panel.
The temporary order on Zhang was imposed by a BCSC panel on May 10, 2023 and will expire on May 10, 2024.
Siu Mui “Debbie” Wong, Siu Kon “Bonnie” Soo, Origin Business Park Inc. (formerly known as Wheatland Industrial Park Inc.)
Investors defrauded by two sisters, Wong and Soo, will get some money back because of efforts by the BCSC.
MNP Ltd., a receiver appointed by the court at the request of BCSC, will carry out a process of distributing approximately $2 million to investors in the scheme.
Investors can visit the receiver’s website to find out more about the claims process for this matter.
CIRO Settlement Agreement
Barber admitted his failure to fulfill gatekeeper responsibilities, contrary to IIROC Rule 1400 (Disclosure to clients of Members’ financial condition and other information), and agreed to the following sanctions:
- A fine in the amount of $25,000; and
- Disgorgement of $27,776 in commissions.
He has also agreed to pay costs in the amount of $5,000.
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 June additions to the Investment Caution List.
Coins-capital claims to be located in Saint Vincent and the Grenadines, and it also claims to offer account packages for trading in forex, commodities, and indices.
Paperbids claims to have offices in Hong Kong, the UK, and Luxembourg. It claims to offer accounts for trading in stocks, forex, crypto, metal, indices, commodities, and NFTs.
Mercatox claims to offer an online cryptocurrency trading platform.
GIS Capital claims to be located in London, and it also claims to offer trading services in forex, stocks, indices, and commodities.
Shaketraders claims to offer Contracts for Difference, commonly known as CFDs, trading services in forex, cryptocurrencies, stocks, indices, and commodities.
Axiance FX claims to be located in Toronto, Canada, and London, UK, and it claims to offer accounts for trading in forex, cryptocurrencies, commodities, and stocks.
Whitemax claims to offer an online cryptocurrency trading platform.
Tierra 500 claims to be located in London, UK and it also claims to offer trading services in stocks, forex, indices, cryptocurrencies, and commodities.
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 by e-mail at [email protected]. You can also file a complaint or submit a tip anonymously using the BCSC’s online complaint form.