Enforcement Roundup – June 2018
In this edition of the Enforcement Roundup, we cover two British Columbia Securities Commission (BCSC) enforcement activities. We also summarize a panel decision and settlement agreements from the Investment Industry Regulatory Organization of Canada (IIROC) and the Mutual Fund Dealers Association of Canada (MFDA).
BCSC Returning Funds to Investors
The Supreme Court of British Columbia approved the distribution plan proposed by Grant Thornton Limited in the Bossteam matter. Grant Thornton will distribute approximately US$3.5 million to 451 investors.
The Court also granted the BCSC’s application to pay interest to investors and to assess claims that were filed after the filing deadline. In addition to the amount of their allowed claim, Grant Thornton will pay investors five per cent interest from April 30, 2012, onwards.
You can find more on the case in the hearing file.
BCSC Notice of Hearing
The BCSC’ s Executive Director issued an amended notice of hearing alleging that Clozza, Forum National Investments Ltd., Corrigan, Dunn, and Mosaic Holdings Ltd. participated in a market manipulation. The notice also alleges that Clozza provided false or misleading statements to the BCSC.
You can find out more in the hearing file.
IIROC Panel Decision
Following a hearing, an IIROC panel sanctioned Smith. He must pay a $125,000 fine, $20,000 in costs, and is permanently prohibited from approval.
You can read the earlier decision for more details on the case.
MFDA Settlement Agreements
In the Settlement Agreement, Gilchrist admitted that he obtained, possessed, and/or used to process transactions, 25 pre-signed account forms in respect of eleven clients, contrary to an MFDA rule.
An MFDA panel sanctioned Gilchrist. He must pay an $8,000 fine, $2,500 in costs, and comply with MFDA rules in the future.
In the settlement agreement, Lamb admitted that he obtained, possessed, or used to process transactions, 18 pre-signed account forms in respect of 12 clients, contrary to an MFDA rule.
Under the settlement agreement, Lamb must pay a $13,500 fine, $2,500 in costs, and comply with MFDA Rules in the future.
In the settlement agreement, Golestani admitted that he contravened MFDA rules when he failed to use due diligence to learn and accurately record Know-Your-Client information for 21 client accounts and ensure that each order accepted and recommendation made for the accounts of clients was suitable for the client.
Sanctions were imposed Golestani. They include:
- a prohibition from conducting securities related business in any capacity while in the employ of or associated with any MFDA Member, for a period of two years;
- a $5,000 fine; and,
- $2,500 in costs.
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 anonymous using BCSC’s online complaint form.