Regulators fine Vancouver Island man $17.5M

B.C. regulators fine Vancouver Island man $17.5M in reputed $65M fraud case

By The Canadian Press

VANCOUVER – Securities regulators in British Columbia have fined a Vancouver Island man $17.5 million and permanently banned him from the province’s capital markets for perpetrating what it says was a fraud on hundreds of people, many of them seniors.

In announcing its decision Wednesday, the B.C. Securities Commission said a commission panel had found that David Michael Michaels, a former mutual fund salesperson, illegally and fraudulently advised 484 clients to purchase more than $65 million of exempt market securities. Such securities are sold under exemptions from prospectus requirements.

The commission, which also ordered Michaels to pay it the $5.8 million in commissions he received “as a result of his misconduct,” says at least $40 million of the money his clients invested has been lost and most of most of the rest remains at risk.

“Michaels’ business model was highly predatory in nature . . . he instilled trust in his clients and then betrayed that trust,” the commission said.

“The majority of his victims have little or no opportunity to earn income from work or otherwise financially recover lost amounts,” it added.

Besides the financial penalties, the panel also ordered that Michaels resign any position he holds as a director or officer of an issuer or registrant and, which limited exceptions, is “permanently prohibited from trading in securities, purchasing securities or exchange contracts and from becoming or acting as a director or officer of any issuer or registrant.”

Just Posted

VicPD warn public on fake firearms after responding to four gun calls in just five hours

Officers treat each firearm as a real weapon until they can determine it isn’t, say police

In a fight against cancer, Victoria man’s only stem cell match was his own donation

More mixed race and Asian stem cell donors needed, says Victoria family

Bridges for Women grad takes on new business idea

Victoria woman puts her lessons into action with Sweeping Beauty Concierge

Howard the Gnome finds a home at Galey Farms

Eight-metre gnome expected to greet visitors to Saanich farm this fall

Purple Day 2019: Victoria marks epilepsy awareness day

1 in 100 Canadians live with epilepsy, a neurological disorder with many symptoms

VIDEO: 13-year-old killed in B.C. crash that involved five kids

The children range in age from six to 17.

POLL: Do you still have a landline telephone?

With smart phones becoming an indispensable part of modern-day life, more and… Continue reading

Greater Victoria Wanted List for the week of March 26

Greater Victoria Crime Stoppers is seeking the public’s help in locating the… Continue reading

MPs denounce leaked reports of Trudeau-JWR clash over Supreme Court pick

Opposition MPs called the leaks an act of desperation meant to smear Wilson-Raybould

Study says B.C.’s housing policies mean drug users can be targeted for eviction

The study involves 50 people living in Vancouver’s Downtown Eastside

VIDEO: Homicide team called in after three killed in Surrey car crash

Investigators ask public to come forward with information, dashcam video

Stranger climbs onto B.C. family’s second-floor balcony, lights fire in barbecue

Incident in Abbotsford terrifies family with two-year-old boy

UPDATED: Sailings resume after BC Ferries boat hits Langdale terminal

The Queen of Surrey is stuck on the dock, causing delays to Horseshoe Bay trips

Eviction halted for B.C. woman deemed ‘too young’ for seniors’ home

Zoe Nagler, 46, had been given notice after living in the seniors complex in Comox for six years

Most Read