August 07, 2014 12:00 am | Author: investright
In July, the BC Securities Commission (BCSC) issued seven
notices of hearing and seven enforcement decisions. The Investment Industry
Regulatory Organization of Canada (IIROC) released one enforcement decision and
three settlement agreements relating to BC residents. The Mutual Fund Dealers
Association (MFDA) did not release any decisions or settlement agreements
during July relating to BC residents.
You can find a summary of some of the recent matters below.
A BCSC panel permanently banned Everett, Duke,
Micron, and IAC from BC’s capital markets, and ordered them to pay back
approximately $5.4 million. The panel also ordered Everett and Duke to pay a $7
million administrative penalty.
In October 2013, a commission panel found that the
respondents committed fraud, illegally distributed securities, and breached the
terms of a Cease Trade Order.
In the original notice of hearing issued in January
2013, BCSC staff also named Leonard George Ralph.
In October 2013, Ralph settled with the Executive Director.
A BCSC panel banned Brenner from BC’s capital
markets for two years for failing to file, on time, insider reports relating to
securities of a reporting company and for lying to commission staff about his
relationship with an offshore account that traded securities of that company.
A BCSC panel banned Golic from BC’s
capital markets for seven years after finding that he illegally distributed
$42,000 worth of securities to three investors.
In October 2011, Golic was convicted of illegally
distributing securities, sentenced to 60 days in jail, and forced to pay $40,000
A BCSC panel banned McGee from BC’s
capital markets for five years and ordered him to pay back the
$21,500 he obtained and a penalty of $10,000.
In June 2014, a commission panel found that, as a
director of Cinnabar, McGee breached prospectus disclosure requirements and
signed inaccurate exempt distribution reports for the company.
In January 2014,
a commission panel sanctioned Cinnabar, Christopher James G. Bass, and Dale Zucchet. All three respondents were named in the
original notice of hearing.
BCSC Liability Decisions – Michael
Patrick Lathigee and Earle Douglas Pasquill; Colin Robert Hugh McCabe and Erwin
Thomas Speckert; and, Weiqing Jane Jin
A BCSC panel found that Lathigee and Pasquill committed fraud. Lathigee and Pasquill
jointly directed and controlled a group of companies called the Freedom
Investment Club (FIC). The panel found that Lathigee and Pasquill fraudulently
raised $21.7 million, and also committed fraud by using $8.5 million of $9.9
million to make loans to related companies.
A BCSC panel found that McCabe made misrepresentations and other misleading
statements when promoting three companies traded on the
Over-the-Counter-Bulletin-Board (OTCBB) in the United States. The panel also
found that Speckert, the managing director of a Swiss company, facilitated
secret payments to McCabe in connection with one of the promotions.
A BCSC panel found that Jin, a Beijing lawyer working in Vancouver, engaged in
illegal insider training. The panel found that Jin purchased 3,000 shares of
Hathor Exploration Limited, a mineral exploration company when she knew that
Comeco Corporation, a TSX and NYSE company, had made an offer to acquire
Hathor. The panel found this to be an undisclosed material fact.
The BCSC panel will make its sanctions decisions in
these cases at a later date.
An IIROC panel fined Jaques $80,000 and ordered
costs of $20,000. The panel also permanently banned Jaques from IIROC
registration. The panel found
that Jaques violated IIROC suitability rules and failed to cooperate with
IIROC’s subsequent investigation.
Access to more cases
Notice of Hearing: Thomas Arthur Williams, Susan Grace Nemeth, Renee Michelle Penko,Paul Finney, Irene G. Beilsetin, Christina Kiemel, Helena Yvonne Becker, DennisCarl Weigel, Daniel Quoming Sam, Eric Clark, Sharon Downing, Robert LaudyWilliams, and the Global Group of Companies