The March edition of the Enforcement Roundup highlights five enforcement actions 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 Findings & Decisions
Sabrina Ling Huei Wei, Justin Colin Villarin, James Bernard Law, Daniel Fernandes Rojo Filho, Heriberto C. Perez Valdes
Wei, Villarin, and Law must pay a combined total of almost $956,000 for their participation in an elaborate fraud that promised investors large returns on gold mining operations in Africa and Brazil that didn’t exist, the BCSC has ruled.
All three were also banned from participating in B.C.’s investment market for varying amounts of time: Wei’s ban is permanent, while Villarin was banned for 25 years, and Law for 20 years.
The panel had previously found that all three solicited B.C. investors, organized events and sold membership units to Massachusetts-based DFRF Enterprises, LLC and Florida-based DFRF Enterprises, LLC between 2014 and 2015.
The fraud, described by the U.S. Securities and Exchange Commission (SEC) as a Ponzi and pyramid scheme, was orchestrated out of the U.S. by Filho, a Brazilian national who was living in Florida at the time of the scheme, along with other associates, including Valdes, a former Florida resident.
The BCSC panel imposed the same bans, for life, on Filho and Valdes, under its authority to reciprocate orders by other securities regulators, self-regulatory organizations, exchanges or courts, either in Canada or abroad.
Read the news release for full details.
Bracetek Industries Group Ltd.
Bracetek Industries Group Ltd. must pay $900,000 and is banned from the investment market for illegally selling securities to an investor, a BCSC panel has ruled.
The panel found Bracetek violated the Securities Act by selling $1.75 million in securities to the investor without a prospectus – a formal document providing important information a person should know before making an investment– and without a prospectus exemption.
Read the news release for full details.
Hunter Wei-Shun Wang
Wang, who coached an investor to lie to a BCSC investigator did not obstruct justice under an older version of the Securities Act, the B.C. Court of Appeal has ruled.
In upholding the appeal, the court sent the matter back to the BCSC, so that a panel can determine if Wang engaged in conduct that is abusive to capital markets.
Read the news release for full details.
BCSC Order
Faiyaz A. Dean
The BCSC has permanently banned Dean from participating in B.C.’s investment market after a U.S. court found him guilty of market manipulation.
In 2018, the SEC accused Dean of engaging in a “fraudulent scheme to effect illegal, unregistered sales of and manipulate the market for shares of … Biozoom Inc.” The SEC alleged that the scheme generated about $34 million in illicit proceeds from sales of Biozoom shares to retail investors and other investors at artificially inflated prices.
Read the news release for full 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 Settlement Agreement
Jingshan (Sarah) He
He admitted to contravening various member’s policies and procedures and MFDA rules. She conducted business out of Burnaby, BC.
He has been prohibited from conducting securities-related business in any capacity while in the employ of or associated with any member of the New SRO for a period of two years; and ordered to pay a $20,000 fine and $5,000 in costs.
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 the March additions to the Investment Caution List.
KeyfxMarkets
KeyfxMarkets claims to have an office located in British Columbia, and it also claims to offer accounts for trading in forex, indices, stocks, and commodities.
CryptoProgram
CryptoProgram claims to have offices worldwide, and it also claims to offer cryptocurrency investment packages.
Gammaron
Gammaron claims to be located in Bulgaria. It also claims to offer an online cryptocurrency trading platform.
MilanPavilion Capital Limited
MilanPavilion Capital Limited claims to offer an online cryptocurrency trading platform.
Saxo Markets
Saxo Markets claims to have offices in Beijing, Copenhagen, London, Spain, Hong Kong, Singapore, and St. Petersburg and it also claims to offer an online investment trading platform to let clients trade in cryptocurrencies.
FirstCapital1
FirstCapital1 claims to be located Switzerland, and it also claims to offer accounts for trading in stocks, indices, cryptocurrencies, ETFs, forex, and commodities.
Bitop
Bitop claims to have offices in Ontario and Colorado, and it also claims to offer an online investment trading platform to let clients trade in cryptocurrencies.
Smart Markets
Smart Markets claims to be located in St. Vincent and the Grenadines, and it also claims to offer accounts for trading CFDs on forex, commodities, indices, bonds, and stocks.
Profitrop
Profitrop claims to offer accounts for trading in commodities, indices, stocks, and cryptocurrencies.
Shackecoins (Simple Tech Inc.)
Shackecoins claims to be located in the Marshall Islands, and it also claims to offer online accounts for trading in cryptocurrencies, currency pairs, indices, metals, shares, and futures.
Cryptop72 Ltd. dba Cryptop72
Cryptop72 claims to have offices in the United Kingdom and Australia, and it also claims to offer accounts for trading in cryptocurrencies, forex, stock indices, and commodities.
Global One Markets
Global One Markets claims to offer a web trading platform for trading in cryptocurrency.
Markets Expert
Markets Expert claims to be located in Switzerland, and it also claims to offer accounts for trading in forex, stocks, indices, commodities, and cryptocurrencies.
TXTCoin
TXTCoin claims to have offices in the UK and Singapore, and it also claims to offer crypto-asset trading and crypto-asset management.
PrestigeCoins
PrestigeCoins claims to be located in Switzerland, and it also claims to offer accounts for trading in commodities, forex, and cryptocurrencies.
Nextonbid
Nextonbid claims to be located in the United Kingdom and it also claims to offer accounts for trading in forex, stocks, cryptocurrencies, commodities, indices, and NFTs.
Nexon Groups Limited
Nexon Groups Limited claims to be located in the United Kingdom and it also claims to offer accounts for trading in stocks, bonds, forex, cryptocurrencies, and commodities.
Cryptos-Wallet
Cryptos-Wallet claims to have an office in Winnipeg, Manitoba, and it also claims to offer accounts for trading in cryptocurrencies, forex, stock indices, commodities, and derivatives.
Cryptospair
Cryptospair claims to offer an online cryptocurrency trading platform.
IntraO
IntraO claims to be located in Saint-Vincent and the Grenadines, and it also claims to offer accounts for trading in cryptocurrencies, currency options, precious metals, and commodities.
TitanTrader
TitanTrader claims to offer an online trading platform to trade cryptocurrencies.
Caplita
Caplita claims to offer investment assistance, an online trading environment, personal account managers, and trading in stocks, indices, forex, cryptocurrency, and commodities.
Crypto Lloyds Ltd.
Crypto Lloyds Ltd. claims to offer trading of forex, crypto assets, and other assets.
Bitcoin Era
Bitcoin Era claims to offer cryptocurrency trading services for investors using advanced trading systems.
JP Crypto
JP Crypto claims to offer accounts for trading in cryptocurrencies.
WiiCrypto
WiiCrypto claims to offer accounts for trading in cryptocurrencies, forex, commodities, and derivatives.
Fivoro
Fivoro claims to have an office in Ontario, the United Kingdom, and the Netherlands, and it also claims to offer accounts for trading in cryptocurrencies, forex, stock indices, commodities, and derivatives.
Crypto-Guider
Crypto-Guider claims to offer stock and digital currency trading services.
Lskinvestments LLC
Lskinvestments LLC claims to be located in the United Kingdom, and it also claims to offer accounts for trading in cryptocurrencies, forex, commodities, and derivatives.
Primiselite
Primiselite claims to offer accounts for trading in cryptocurrencies, forex, equities, and derivatives.
Fortune500group
Fortune500group claims to offer accounts for trading in cryptocurrencies, forex, commodities, and derivatives.
Crypto-Seed
Crypto-Seed claims to offer accounts for trading in cryptocurrencies.
SimpliiCryptos
SimpliiCryptos claims to be located in the United Kingdom, and it also claims to offer accounts for trading in cryptocurrencies, forex, equities, commodities, and indices.
SeaStock24
Seastock24 claims to offer accounts for trading in cryptocurrencies, forex, equities, commodities, indices, and derivatives.
Traders Room FX
Traders Room FX claims to be located in New York, and it also claims to be an online cryptocurrency trading platform.
Primespot-Way Ltd.
Primespot-Way Ltd. claims to be located in Germany, and it also claims to offer accounts for trading derivatives on cryptocurrencies, commodities, stocks, forex and indices.
Fibit Pro
Fibit Pro claims to be located in India. It also claims to offer an online cryptocurrency trading platform.
VIPTRADE
VIPTRADE claims to be located in St. Vincent and the Grenadines, and it also claims to be a broker that offers accounts for trading forex contracts and derivatives.
Brock 500
Brock 500 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.
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