Late last week the securities regulator did something for the first time that could provide future financial relief for your clients hurt by fraud.
According to Paul Bourque
, Executive Director of the BCSC, the commission was given new powers in November 2013 that provide it with more bite when it comes to financial restitution of victims of investment fraud.
“This is the first time the commission has been able to use its new powers to return money to investors,” said Bourque. “We want investors who lost money to CPC and Shantz to make claims and recover part of their investment. We hope there will be more opportunities in the future to return money to investors.”
The BCSC issued a press release
Thursday saying it will notify investors in the coming days who lost money in a 2012 fraud involving Canadian Pacific Consulting and Michael Robert Shantz, who solicited German and Swiss residents regarding non-existent futures trading, that they are eligible to claim funds received under a section 161(1)(g)
order from May 22, 2012.
The total sum up for grabs from this order is just less than $132,000, monies that were frozen back in 2012 while the commission conducted their investigation. Shantz himself was fined $630,000, banned permanently from B.C.’s capital markets and ordered to pay to the commission the $1.5 million Shantz received from his illegal activity.
As the BCSC executive director mentioned in its press release, it’s possible additional funds could be recovered from Shantz in the future which would also be claimable by investors under section 161(1)(g) of the Securities Act.
Finally, a securities regulator with some bite to match its bark.