A British Columbia Securities Commission (BCSC) panel has found that a former investment advisor made a false or misleading statement when he lied under oath to BCSC investigators.
The advisor was the sole director of a company that was involved in trading securities. During a compelled interview with BCSC investigators in 2017, the advisor said his company had received money from only one investor.
When confronted with proof he had received money from a second investor, he said, “You got me there, eh?”
When the investigators asked the advisor about the discrepancy in his responses, he admitted that he had attempted to conceal the information from the BCSC. By doing so, the panel found that he made a false or misleading statement.
In addition, the executive director of the BCSC had applied to the panel for a reciprocal order against the advisor as a result of a 2018 decision by the Investment Industry Regulatory Organization of Canada (IIROC). An IIROC panel permanently banned the advisor and fined him $125,000 for engaging in personal financial dealings with a client, placing off-book investments for a client without the knowledge or consent of his employer, and failing to cooperate with the IIROC investigation, among other contraventions, said a news release.
On that matter, the BCSC panel concluded that a reciprocal order against the advisor is in the public interest, writing: “Participation in the securities industry is not a right, and participation is not appropriate for someone who demonstrates a strong reluctance to follow regulations.”
The panel will rule on the details of the reciprocal order and the sanctions for the misconduct after considering submissions from BCSC staff and the respondent.
