The September Enforcement Roundup features six enforcement actions taken by the BC Securities Commission (BCSC). It also includes nine new additions to the Investment Caution List.
BCSC Enforcement
BCSC Settlement Agreement
Aaron Keay
In May 2022, Keay (from Vancouver) was made aware of a reverse takeover by a BC company whose shares were traded on the TSX Venture Exchange. Before this transaction was made public, he directed the purchase of $134,000 worth of shares in accounts held by two close relatives.
Keay has paid $337,500 to the BCSC and agreed to a temporary market ban after admitting to insider trading and conduct contrary to the public interest.
Read the news release for full details.
BCSC Sanctions
Randolph Michael Rochefort
From 2013 to 2016, Rochefort of Victoria brokered transactions for investors who bought securities from a real estate investment company. Instead of forwarding the investors’ money to the company as he promised, he used some of the funds for personal expenses and cash withdrawals.
Rochefort pleaded guilty to four counts of theft over $5,000 and must serve a conditional sentence for nearly two years. He is also permanently banned from BC’s investment market.
Read the news release for full details.
Sharief Deona McDowell
McDowell of Loma Linda, California, admitted to intentionally defrauding 28 investors, including a BC resident between 2018 to 2022. As part of a scheme, McDowell started an alleged investment company that she controlled. Instead of buying futures and options contracts, she used the funds to pay for personal expenses and to make payments to other investors.
McDowell pleaded guilty to one count of wire fraud and was sentenced to more than five years in prison and ordered to pay restitution of US$2.4 million. She is also permanently banned from participating in BC’s investment market.
Read the news release for full details.
LiquiTrade Ltd.
In 2020, LiquiTrade, incorporated in the Cayman Islands, began operating a crypto trading platform known as LATOKEN. In July 2024, the BCSC found that LiquiTrade created a derivatives trading market, promoted derivatives, and operated as an exchange even though they were not registered to engage in these activities in BC.
BCSC has banned LiquiTrade from trading in or purchasing securities and derivatives on behalf of British Columbians. They are also prohibited from engaging in any promotional activities in BC and were ordered to pay an administrative penalty of $500,000.
Read the news release for full details.
BCSC Findings
Meiyun Zhang
A BCSC panel found that Zhang defrauded investors nearly $2 million under the guise of helping Chinese students and tourists. Zhang raised approximately $3.2 million from three BC investors, telling them their money would generate monthly returns of six to 10 per cent without risk. Zhang varied her pitch including telling investors that they would earn returns by exchanging foreign currency for Chinese students and tourists visiting Canada.
BCSC found that the funds were used for Zhang’s personal purposes, including retail purchases, gambling, and paying utility bills. She is now temporarily banned from participating in the investment market.
Read the news release for full details.
BCSC Notice on the Availability of Funds
Bracetek Industries Group Ltd. (Bracetek)
BCSC will return an additional $178,750 to an investor who lost money as a result of an illegal distribution of securities.
Bracetek did not file a prospectus, a formal document providing details of an investment. As a result, Bracetek was ordered to pay $850,000. In March 2024 the BCSC received $178,750 in partial satisfaction of that order. This amount, plus interest, will be paid in full to the investor, who is the only person to file a claim.
Read the news release for full details.
BCSC Early Intervention
The BCSC Investment Caution List notifies British Columbians about unqualified investments and unregistered activity origination from outside the province but accepts BC residents as clients.
Below are the September additions to our Investment Caution List:
Bityard
Bityard claims to be located in Singapore and claims to operate an online cryptocurrency trading platform.
Saphire Q-Trade (no relation to Qtrade Direct Investing)
Saphire Q-Trade claims to be located in Switzerland and Canada. It also claims to offer different types of accounts for trading in cryptocurrencies, forex, stocks, indices, and commodities.
Virgo (no relation to Virgo CX)
https://virgo-chain.com/ claims to operate an online cryptocurrency trading platform.
Shares Holding
Shares Holding claims to be located in Toronto, Ontario and it also claims to offer different types of account for trading in forex, cryptocurrencies, stocks, commodities, and indices.
GoldMaxis
GoldMaxis claims to be located in Switzerland and it also claims to offer different types of accounts for trading in forex, stocks, commodities, bonds, and ETFs.
Nova Growth Holdings
Nova Growth Holdings claims to be located in Revelstoke, BC and claims to offer different types of accounts for trading in cryptocurrency.
InvestInspire Limited
InvestInspire Limited claims to offer different types of accounts for trading in forex, indices, cryptocurrencies, commodities, stocks, and ETFs.
BTCBox-Max
BTCBox-Max claims to be located in the United States and it also claims to offer cryptocurrency trading services.
Universal Capital Markets
Universal Capital Markets claims to offer different types of plans for trading Contracts for Difference in forex, cryptocurrencies, commodities, stocks, and indices.
Report a Concern
If you have concerns about a person or company offering an investment opportunity, please contact the 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 using BCSC’s online complaint form.
If you have information relating to fraud or serious market misconduct, you can securely submit tips through our Whistleblower program. Qualified tips may be eligible for cash rewards up to $500,000.
InvestRight.org is the BC Securities Commission’s investor education website. Subscribe to receive email updates from BCSC InvestRight.
