July 11, 2019 10:55 am | Author: Julian
This month’s edition of the Enforcement Roundup covers a British Columbia Securities Commission (BCSC) settlement agreement, a sanctions decision, a findings decision, and one criminal charge related to a BCSC investigation. We also address five Reasons for Decisions from the Mutual Fund Dealers Association of Canada (MFDA).
BCSC Settlement Agreement
The BCSC reached a settlement agreement with a cannabis company that participated in conduct that is abusive to BC’s capital markets.
The executive director decided that it is not in the public interest for the BCSC to issue orders against the company, stating “Beleave’s post-Notice of Hearing conduct is a good example of what we expect from market participants who must address serious public interest concerns.”
Beleave Inc. is one of several companies named by the BCSC in a November Temporary Order and Notice of Hearing, alleging a scheme to sell shares to a group of purported consultants. The BCSC investigation into the scheme is continuing.
BCSC Sanctions Decision
A BCSC panel imposed a $350,000 administrative penalty on Furman, who deceived investors about his status as a registrant, his prior history of success in trading in securities, and his use of investor funds. Furman was also ordered to return $420,847 in gains that he retained from amounts raised from ten investors through two B.C. companies that have since dissolved – Liquidus Holdings Inc. and Liquidus Capital Inc.
Furman must also resign any position as a director or officer of an issuer or registrant, and is permanently prohibited from taking any such role. Furman also was permanently barred from various securities market activities.
BCSC Finding Decision
A BCSC panel found that Hall, Eugster, Sanders and ecoTECH breached a BCSC Cease Trade Order (CTO) and failed to tell investors about the existence of the order.
By neglecting to inform investors that the shares issued for cash were being issued in violation of a CTO, Hall, Eugster, Sanders and ecoTECH committed misrepresentation. The panel will impose sanctions after considering submissions from BCSC staff and the respondents.
An investigation by the BCSC has led to a former Surrey man being charged under the Criminal Code with fraud over $5,000, theft over $5,000, and using forged documents.
Panyavong, was arrested in Ontario following a joint effort by the BCSC’s Criminal Investigations Branch, the Ontario Securities Commission’s Joint Serious Offences Team, and the Niagara Regional Police Service.
MFDA Reasons for Decision
The MFDA issued Reasons for Decisions in connection with separate settlement hearings in the matters of Taayla Markell Mark, Pamela (Pan) Chen, Alan Truong, Hussein Shivji, and Investors Group Financial Services Inc. In each of the Reasons for Decision, the MFDA confirmed the sanctions imposed on the individual.
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.