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Enforcement Roundup – September 2019

The Enforcement Roundup summarizes enforcement actions taken by the BCSC, MFDA, and IIROC.

In this edition of the Enforcement Roundup, we cover one British Columbia Securities Commission (BCSC) Investor Alert, one BCSC sanctions decision, and one BCSC settlement agreement. We also look at one settlement agreement of the Mutual Fund Dealers Association of Canada (MFDA).

BCSC Enforcement 

BCSC Investor Alert

WoToken Wallet, Cloud Wallet, WoToken Limited, WO Data Group Ltd., WO Data Group Limited, and Cloud Technology & Investments Pty Ltd.

The BCSC is alerting investors about “smart wallet” apps that purportedly store a person’s crypto-assets and earn money for depositors. One app, WoToken Wallet, claims that users will realize earnings of six to 20 per cent monthly by activating the trading software. Another app, Cloud Wallet, says users will earn six to 15 per cent monthly in the same way.

“These apps’ claims of big payouts from some kind of automated crypto-asset trading appear too good to be true,” said Doug Muir, the BCSC’s Director of Enforcement. “The apps also resemble a pyramid scheme, in which investors are promised earnings if they get others to join in. Big promises and pyramid-like payouts are both classic warning signs of risky investments. We urge everyone to approach these apps with extreme caution.”

Read the full Investor Alert for more information.

Investor Alert

BCSC Sanctions Decision

Patrick K. Prinster, David Scott Wright, Donald Bruce Edward Wilson, DominionGrand II Mortgage Investment Corporation, and DominionGrand Investment Fund Inc.

The British Columbia Securities Commission imposed a total of $1.7 million of financial sanctions on three B.C. men and two mortgage investment companies after finding that they committed fraud.

Prinster and Wright were each ordered to pay $250,000 and Wilson was ordered to pay $150,000. The panel imposed financial sanctions of $561,479 on DominionGrand II Mortgage Investment Corporation, and $500,961 on DominionGrand Investment Fund Inc.

The panel permanently banned Prinster, Wright, and Wilson from various securities activities.

View the news release for full details on the sanctions decision.

News Release

BCSC Settlement Agreement

John Cockburn, and Smart Trak Technologies Inc.

The BCSC has reached a settlement agreement with Cockburn, a Richmond man who admitted to illegally selling shares of his company, Smart Trak Technologies Inc.

Cockburn, 78, agreed to pay $20,000 to the BCSC as part of the settlement. He is prohibited for four years from various securities activities. He does not have any history of securities misconduct.

View the news release for full details on the settlement agreement.

News Release

MFDA Enforcement

MFDA Settlement Agreement

David Michael Gordon

In the MFDA settlement agreement, Gordon admitted that he contravened two MFDA rules when dealing with at least six clients between 2009 and May 2016. Gordon conducted business in the Campbell River, British Columbia area.

The MFDA panel fined Gordon $25,000 and ordered $2,500 in costs. He is also permanently prohibited from conducting securities related business in any capacity while in the employ or associated with an MFDA Member.

View the news release for full details on the settlement agreement.

News Release

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 through e-mail at [email protected]. You can also file a complaint or submit a tip anonymously using the BCSC’s online complaint form. is the British Columbia Securities Commission’s investor education website. Subscribe to receive email updates from BCSC InvestRight.

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