B.C. regulators have secured a court order for the sale of a Hawaiian property belonging to a man found to have committed fraud against 484 investors.
In June the B.C. Securities Commission (BCSC) and David Michael Michaels reached an agreement whereby he’d have to sell his tropical property, with the proceeds going to the BCSC.
The regulator announced July 27 that that a Hawaiian court approved the sale.
"This is a great outcome for victims of Mr. Michaels' misconduct," BCSC enforcement director Doug Muir said in a statement.
"It avoids the further delay and uncertainty of lawsuits, which means we will have money to return to victims sooner. The BCSC will continue our efforts to collect our sanctions against Mr. Michaels, and this agreement is a good step as part of that process."
A B.C. Securities Commission (BCSC) panel concluded in 2014 that David Michael Michaels, a former mutual fund salesman, had advised clients to purchase $65 million in securities without being registered.
“The findings panel concluded that securities representing $40 million of the original $65 million invested by Michaels’ clients are now worthless,” the regulator wrote in its decision.
The panel had imposed sanctions on him totalling $23.3 million.
As part of the June 2018 deal, Michaels also agreed to make a $50,000 cash payment to the BCSC on top of selling the Hawaiian property.
The regulator will distribute the money back to investors.
