Decision compels surrender of retirement fund withdrawals, advancing investor restitution efforts
The British Columbia Securities Commission has scored another legal victory in its prolonged effort to collect tens of millions in unpaid sanctions from a convicted investment fraudster.
In a decision released March 18, the BC Court of Appeal upheld a prior Supreme Court order requiring Earle Douglas Pasquill to turn over annual withdrawals from two Life Income Fund (LIF) accounts to the regulator. The ruling strengthens the commission’s ability to pursue funds held in certain retirement savings vehicles as it works to recover money for affected investors.
The court found that provincial pension legislation does not prevent the BCSC from enforcing collection measures against payments made from Pasquill’s LIF accounts. As a result, any withdrawals from the accounts — which held more than $550,000 as of 2024 — must now be directed to the regulator for potential distribution to victims.
The outcome marks another development in enforcement proceedings connected to one of the largest investment fraud cases in the province. Pasquill still owes $36.7 million in financial sanctions, including a $15-million administrative penalty and $21.7 million assessed as profits gained through fraudulent conduct. To date, he has not paid any portion of the outstanding amount.
The case dates back to a 2014 BCSC panel decision that found Pasquill and Michael Patrick Lathigee, who co-ran the Freedom Investment Club, raised about $21.7 million from nearly 700 investors in 2008. The panel concluded that securities were sold without disclosing serious liquidity issues affecting the venture.
Although the appeal court sided with the regulator on accessing the LIF withdrawals, it rejected the BCSC’s cross-appeal seeking the appointment of a receiver.
Life Income Funds are tax-deferred retirement accounts that require withdrawals within set minimum and maximum limits. Any proceeds ultimately collected by the commission from Pasquill’s accounts are expected to be made available to investors who suffered losses in the scheme.
