The September edition of the Enforcement Roundup covers the latest enforcement news from the BC Securities Commission (BCSC) and the Canadian Investment Regulatory Organization (CIRO). It also includes 13 new additions to the Investment Caution List.
BCSC Orders and Decisions
A BCSC panel ordered the former CEO of a Vancouver mining company to pay and issued penalties for omitting from its news releases and filings that the funds raised in two private placements would be used to pay consultants.
It was found that New Point and former CEO, Bryn Gardener-Evans, violated securities law in creating strong expectations among their investors that new capitals raised would go towards mining projects that it mentioned in previous news releases.
BCSC Settlement Agreements
A North Vancouver resident (Cameron Paddock) and his corporation (Rockshore) jointly agreed to pay $200,000 to the BCSC after admitting to insider trading and conduct that was abusive to the capital markets.
Rockshore had a pattern of acquiring and selling shares of companies for which Paddock was an acting consultant. In addition, Rockshore also had a special relationship with two issuers and was aware of material information that is not normally disclosed. Paddock and his corporation are prohibited from various market activities for 10 years.
BCSC Notice on the Availability of Funds
Shijun “Clark” Zhu entered into an agreement with the BCSC when Zhu admitted to contravention of the Securities Act after being in the business of unregistered trading and advising. As a result, Zhu was ordered to pay $38,639.69, representing commissions he earned through his misconduct.
If you are an investor who lost money in this matter, you may be eligible to recover funds.
CIRO Decisions and Reasons
A CIRO hearing panel found that Mauro failed to use due diligence to ensure that his investment recommendations were suitable for his client. Mauro admitted that he involved a client in a high-risk trading program over a 26-monh period that was not suitable for her financial circumstances, investment objectives, time horizon, or risk tolerance.
Mauro agreed to pay a fine in the amount of $30,000 and costs in the amount of $5,000.
BCSC Early Intervention
Investment Caution List
The BCSC published an Investment Caution List to notify British Columbians about unqualified investments and unregistered activity originating from outside of the province but accept BC residents as clients.
Below are the September additions to the Investment Caution List:
Capital Lake Finance claims to have offices in Québec and Ontario. It also claims to offer high-yield investment plans.
StableTrading claims to trade foreign exchange and/or contracts for differences on margin for investors.
Allstocknow claims to be located in the Czech Republic and it also claims to offer Contract for Difference trading services in forex, stocks, indices, metals, and energies.
Coinverse claims to operate a web-based and mobile cryptocurrency trading platform. We are aware that Coinverse accepts BC residents as clients.
Emirex (New York) claims to be incorporated in New York, United States. It also claims to offer an online cryptocurrency trading platform. We are aware that Emirex (New York) accepts BC residents as clients.
GeminiPro claims to offer an online cryptocurrency trading platform. We are aware GeminiPro accepts BC residents as clients.
WEEX.Pro, Inc. claims to offer an online cryptocurrency trading platform. We are aware that WEEX.Pro, Inc. accepts BC residents as clients.
Altrix Edge claims to be a cryptocurrency and CFD trading platform powered by Artificial Intelligence (AI).
Lumo Space Pro claims to be located in the United States and it also claims to offer trading services in stocks, forex, and commodities
Audemars Group claims to be located in Switzerland and it also claims to offer trading services in cryptocurrencies, stocks, indices, and commodities.
Taurus claims to be located in Denver, Colorado and it also claims to offer investment advisory services for crypto assets.
Palm Alliance Management claims to have offices in Wilmington, Delaware, and Boston. It claims to be an asset management company that provides trading services in stocks and index funds.
Pinnacleventures LTD claims to be located in British Columbia and it also claims to offer investment plans for trading in cryptocurrencies.
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.