April 07, 2016 12:00 am | Author: investright
Every month we release an Enforcement Roundup. We cover
British Columbia Securities Commission (BCSC) regulatory cases and report on
other self-regulatory organizations’ decisions when pertinent. From time-to-time,
we also cover criminal cases related to our decisions or investigations.
This Enforcement Roundup contains three BCSC enforcement
decisions and three Mutual Fund Dealers Association of Canada (MFDA) decisions.
For more detailed information on the cases listed below,
click the links to view the news release, which is available at bcsc.bc.ca.
In a settlement agreement with the BCSC, Eberwein admitted
that he engaged in “wash trades” that created a misleading appearance of
trading activity in a company traded on the TSX Venture Exchange.
Eberwein acknowledged that his actions led to a misleading
appearance of trading activity in the shares of Ackroo Inc. He has paid $15,000
to the BCSC, and is prohibited from trading and purchasing any securities or
exchange contracts for a period of four years (with limited exceptions).
In a settlement agreement with the BCSC, Patrick Aaron Dunn
admitted that he sold securities in breach of securities laws.
Dunn acknowledged that his conduct breached securities laws
regarding prospectus and registration requirements. He paid $11,000 to the
BCSC, and is prohibited from trading in securities (with limited exceptions),
becoming or acting as a director or officer of any issuer or registrant (with
limited exceptions) and from becoming or acting as a promoter or registrant
(with limited exceptions) for a period of two years. Dunn is also banned, for
the same period, from acting in a management or consultative capacity in
connection with the securities market, and from engaging in investor relations
A BCSC panel that Spangenberg and two corporate respondents
fraudulently raised over $170,000 from at least six B.C. residents in exchange
for shares in Odyssey Renewable Growth Inc. and geoTreasuries Clean Energy
Neither Odyssey nor geoTreasures has ever filed a prospectus
Consequently, the panel also found that Spangenberg and both
corporate respondents breached securities laws pertaining to prospectus
The panel directed the parties to make submissions on
sanctions according to the schedule set out in the findings.
In the settlement agreement, Gibson admitted that he
obtained, maintained and, in some instances, used to process transactions, 19 pre-signed
account forms in respect of 16 client accounts, contrary to MFDA rules. Gibson
also admitted that he falsified and, in some instances, used to process trades,
five account forms in respect of six clients, contrary to MFDA rules.
Gibson paid a fine of $10,000, and costs of $2,500.
In the settlement agreement, Chan admitted to falsifying at
least two client signatures on account forms and used the account forms to
update information in the clients’ accounts, contrary to MFDA rules.
Chan paid costs of $1,500 and is prohibited from conducting
securities related business for a period of one month.
In the settlement agreement, Sarang admitted that he engaged
in personal financial dealings with a client that gave rise to a conflict of
interest, which Sarang failed to address, contrary to MFDA rules. Sarang also
admitted to engaging in another gainful occupation which was not disclosed to or
approved when he was a shareholder and
director of a corporation.
He also admitted to misleading an MFDA Member, thereby
interfering with the Member’s ability to supervise Sarang.
Sarang paid a fine of $7,500, costs of $2,500, and has been
permanently prohibited from conducting securities related business.