$1.5M in penalties for North Shore residents who defrauded investors, BCSC says
Three Metro Vancouver men have been banned from participating in financial markets and ordered to pay more than $1.5 million in penalties to the B.C. Securities Commission.
A hearing panel of the commission found earlier this year that West Vancouver residents John Sand and Jolyon Charles Christopher Gulston, as well as North Vancouver resident Karol Achs, had defrauded investors of $600,000.
The two investors who provided the funds believed their money would be used to build a facility to produce zinc-air fuel cell batteries. The trio had falsely told the investors that there were already purchase orders for the batteries from around the world, according to the BCSC.
Instead, Sand, Gulston and Achs spent at least $360,000 of the money on personal expenses. These included a payment to a company controlled by Gulston; repayment of an investment by Sand's girlfriend; payment of credit card debt owed by Achs and a relative of his; and "various amounts for expenses which had no apparent connection to the intended investment purpose," according to the panel's decision on discipline for the three men, which was published online Tuesday.
"Fraud does immeasurable harm to the reputation and integrity of the capital markets and public confidence in those markets," the decision reads. "As such, its impact extends beyond the investors in this matter to the investing public as a whole."
Citing the seriousness of the offences, the panel ordered each man to pay an administrative penalty of $380,000. It also ordered them to pay back the amounts they obtained through their wrongdoing: $180,000 for Achs, $120,000 for Sand and $100,000 for Gulston. Those amounts total just $400,000 because the panel found that the men had already repaid $200,000 to investors.
Any portion of this money that the BCSC collects "could be distributed to victims," the commission said in a news release.
The panel also deemed Sand, Gulston and Achs "unfit to act as a registrant, director, officer, or advisor," issuing each man a lifetime ban from holding such positions, as well as from trading or purchasing securities or derivatives and other investment activities.
"The level of seriousness of the fraud here was significant," the panel wrote in its decision.
"The dishonesty was intentional and planned and included the creation of false documents and a failure to keep the types of records which would allow the flow of funds to be accurately tracked."
CTVNews.ca Top Stories
From outer space? Sask. farmers baffled after discovering strange wreckage in field
A family of fifth generation farmers from Ituna, Sask. are trying to find answers after discovering several strange objects lying on their land.
Broadcaster and commentator Rex Murphy dead at 77: National Post
The National Post is reporting that Rex Murphy, the pundit and columnist who hosted a national call-in radio show for decades, has died.
Pearson gold heist suspect arrested after flying into Toronto from India
Another suspect is in custody in connection with the gold heist at Toronto Pearson International Airport last year, police say.
Millions of cyberattacks per hour as B.C. government investigates multiple breaches
Careful attention to government statements and legislation is required to get a handle on the level of risk British Columbians’ information is under, as investigators probe multiple breaches under a continued barrage of attacks.
Ontario family receives massive hospital bill as part of LTC law, refuses to pay
A southwestern Ontario woman has received an $8,400 bill from a hospital in Windsor, Ont., after she refused to put her mother in a nursing home she hated -- and she says she has no intention of paying it.
Debate on abortion rights erupts on Parliament Hill, Poilievre vows he won't legislate
A Conservative government led by Pierre Poilievre would not legislate on, nor use the notwithstanding clause, on abortion, his office says, as anti-abortion protesters gather on Parliament Hill.
Justin and Hailey Bieber are expecting their first child together
Hailey and Justin Bieber are going to be parents. The couple announced the news on Thursday on Instagram, both sharing a video that showcases Hailey Bieber's growing belly.
Here are the ultraprocessed foods you most need to avoid, according to a 30-year study
Studies have shown that ultraprocessed foods can have a detrimental impact on health. But 30 years of research show they don’t all have the same impact.
New 'Lord of the Rings' film coming in 2026
The Oscar-winning team behind the nearly US$6 billion blockbuster 'Lord of the Rings' and 'The Hobbit' trilogies is reuniting to produce two new films.