Advisor receives lifetime ban

Advisor receives lifetime ban

Advisor receives lifetime ban

A British Columbia Securities Commission (BCSC) panel has permanently banned Rodney James Wharram from the province's capital markets and fined him over $1 million for fraud.

The panel ordered that Wharram pay to the commission $517,500, the amount obtained a result of his misconduct. Wharram and three companies, The Falls, Deercrest, and West Karma, are jointly and severally liable for this amount. Wharram was also ordered to pay an administrative penalty of $500,000.

“In this case, the investor losses were significant,” the panel wrote. “Wharram's fraudulent misconduct was significant and repeatedly deceitful. As a consequence, it is necessary, for deterrence purposes, to order a significant administrative fine. Other market participants must know that significant financial sanctions will follow this type of misconduct.”

In February 2015, the panel found that Wharram, West Karma Ltd. and the Falls Capital Corp. committed fraud when they took $139,000 from Falls Capital, deposited it with West Karma, and then used it for Wharram's personal expenses.

The panel also found that Wharram, West Karma and Deercrest Construction Fund Inc. committed fraud when they took $130,000 from Deercrest, deposited it with West Karma, and then used it for Wharram's personal expenses.

Wharram and Deercrest were found to have committed fraud when they took $265,000 directly from Deercrest's bank accounts and used it for Wharram's personal expenses.

Wharram, the Falls, and Deercrest had originally raised the money taken by Wharram from investors for the purposes of developing a real estate project near Chilliwack, B.C.

The panel ordered that Wharram resign any position he holds as a director or officer of any issuer or registrant, and he is permanently prohibited from becoming or acting as a director or officer of any issuer or registrant.

He is also permanently banned from trading or purchasing securities or exchange contracts, acting as a registrant or promoter, engaging in investor relations activities, and acting in a management or consultative capacity in connection with the securities market. The panel also ordered that the Falls, Deercrest, and West Karma be permanently cease-traded.

9 Comments
  • Ross Birney 2015-12-02 11:36:54 AM
    ... and yet not a dime of these fines will ever be collected nor will the investors recover any of their losses.
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  • Murray Schultz 2015-12-02 12:23:25 PM
    Don't know the details of this case but do know that the BCSC (and other regulators) are doing their job when crooks take money from innocent investors and then re-purpose that money for use in other businesses (on which no return or return of capital is generated) and for use as their personal piggy bank. In the USA these white collar crimes are also generating significant jail time (in excess of 10 years). I wonder how many of Canada's fraudsters would be willing to trade the money they stole for 15 years in a federal prison?
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  • Ken MacCoy, CHS 2015-12-02 1:04:14 PM
    Good news Nick.

    But, what are the odds that the British Columbia Securities Commission (BCSC) will ever collect?

    If the BCSC is anything like the MFDA, then their bark is worse than their bite.

    It would be nice to know if the worm was ever charged for fraud and did any jail time.
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