Firm defrauded people of $1.53 million, regulator unsure if any more money can be recovered
The British Columbia Securities Commission (BCSC) has ordered that $131,781, plus interest, be paid to several investors who were victims of a fraudulent investment scheme.
Michael Shantz and his company, Canadian Pacific Consulting (CPC), solicited German and Swiss residents to open trading accounts with CPC. Shantz and CPC, which maintained a fake office in Vancouver, falsely claimed that they would conduct gold futures or foreign exchange trading on behalf of these individuals. Shantz and CPC were not registered to engage in trading.
In May 2012, the panel ordered Shantz and CPC to pay the BCSC $1.53 million, representing the amount obtained as a result of the illegal activity. It also ordered Shantz to pay an administrative penalty of $630,000 and permanently banned him from B.C.’s capital markets.
Under the Securities Act, the BCSC must make available the money it receives from a section 161(1)(g) order to investors who lost money in that case. Six claims, totalling $755,596, were submitted relating to CPC’s illegal activity. The BCSC has recovered $131,781, and it is unclear if any more money can be collected.
The BCSC panel ordered that the recovered funds be distributed on a pro-rated basis to the six claimants, based on how much each person invested, less any money received from CPC. The size of the payments, excluding interest, range from $2,477 to $106,615, plus an additional pro-rated amount to each claimant from the accumulated interest.