The May edition of the Enforcement Roundup covers recent enforcement news from the BC Securities Commission (BCSC) and the New Self-Regulatory Organization of Canada (New SRO). As of June 1, 2023 the New SRO is now the Canadian Investment Regulatory Organization (CIRO). We also highlight 10 new additions to the Investment Caution List.
BCSC Settlement Agreements
A Vancouver portfolio manager Lee, Turner & Associates (LTA), has agreed to pay the BCSC $30,000 and to provide reports of its compliance system and operations from a compliance consultant, after a BCSC examination revealed significant repeat deficiencies.
The deficiencies violated the requirement for registrants to have controls and supervision to comply with securities laws and manage the risks associated with their business. The deficiencies also violated the requirement that registrants maintain current and accurate know-your-client (KYC) information for clients to meet their suitability obligations.
BCSC Findings & Decisions
Dunn must resign as the head of a Viribus Structural Connectors Inc. for violating a previous order of the BCSC and for failing to disclose his enforcement history while raising money from investors.
Dunn, an officer and director of Viribus Structural Connectors Inc., must resign from those positions within 90 days, and is banned from serving as a director or officer of any issuer or registrant for at least seven years. He must also pay a $60,000 administrative penalty.
Prohibitions on Dunn’s market activity will continue until he pays the administrative penalty.
Viribus must pay an administrative penalty of $10,000.
For The People FX Inc. (FTPFX), Robert George Henry Tyrer, Athanasios Zacharopoulos, and Bruce Dudman
The Executive Director of the BCSC has imposed a temporary order on a self-described investment firm and three individuals associated with it.
The BCSC has obtained evidence that For The People FX Inc. (FTPFX) and the three individuals – Tyrer, Zacharopoulos, and Dudman – may be continuing to violate the registration and prospectus requirements of the Securities Act, and making representations prohibited by the Act, despite receiving a caution letter from the BCSC regarding this conduct in 2022.
New SRO Enforcement
As of June 1, 2023 the New SRO is now the Canadian Investment Regulatory Organization (CIRO).
New SRO Decision & Reasons
A Hearing Panel of the New SRO outlined its findings of misconduct made against Thomas, alleging that:
- Between February 2019 and August 2019, she misappropriated or failed to account for monies obtained from a client or in the client’s name.
- Between February 2019 and August 2019, she submitted for processing unauthorized redemptions in the account of a client, contrary to the Member’s policies and procedures.
As a result, Thomas has been permanently prohibited from conducting securities-related business, and ordered to pay a $300,000 fine and $10,000 in costs. She carried on business in the Merritt, British Columbia area.
New SRO Settlement Agreement
Danielak admitted to conduct involving entering orders that he ought reasonably to have known would create, or could reasonably be expected to create, a false or misleading appearance of trading activity or interest in the purchase or sale of the security and failing to comply with his Dealer Member’s policies and procedures.
In the Settlement Agreement, Danielak agreed to the following sanctions:
- A fine of $21,000;
- Disgorgement for commissions of $105;
- A two-month suspension from access to a marketplace regulated by the Corporation; and
- To re-write the Conduct and Practices Handbook.
Danielak also agreed to pay costs in the amount of $2,500.
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 May additions to the Investment Caution List.
Satoshi Mining Stream claims to be located in Toronto, San Diego, and London. It also claims to offer investment plans for forex, stocks, CFDs, binary options, and cryptocurrency trading.
Coinone claims to be offer crypto futures trading and liquidity mining pools that generate returns for investors.
Topcredit claims to offer an online cryptocurrency trading platform.
Premium Finance Solutions Limited claims to be located in the United Kingdom, and it also claims to offer accounts for trading in forex, commodities, stocks, and indices.
Reformatix claims to offer trading services in contracts for difference for crypto, forex, commodities, stocks, and indices.
Tesler claims to provide algorithmic crypto trading services.
Beneffx.com claims to offer trading services in contracts for difference for stocks, forex, commodities, indices, and cryptocurrencies.
GSPartners conducts business using various names, including GSB Gold Standard Pay Ltd., GSB Gold Standard Bank Ltd., Gold Standard Trade, Lydian World, G999, GSTrade, and Swiss Valorem Bank. They claim to offer cryptocurrency investment services.
Jukebox Capital Inc. claims to be located in Quebec, and it also claims to offer investment packages for trading in cryptocurrency, forex, and other financial instruments.
Signix LTD, operating as Portrades, claims to have a registered address on the Marshall Islands, and it also claims to offer trading services in forex, cryptocurrencies, commodities, stocks, and indices.
Report a Concern
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.