Justice officials in Vancouver are working on extraditing a former Victoria man who allegedly perpetrated what has been called "one of the most callous and audacious frauds'' ever seen in B.C.
The move comes after Ian Thow was arrested in Oregon on B.C fraud charges.
The 48-year-old former investment adviser was picked up in Portland as he exited a Portland condominium to go jogging on Tuesday morning.
Acting Sergeant Sammy Wu, who speaks for the R.C.M.P's Integrated Market Enforcement Team, says U.S. Marshals made the arrest based on warrant information sent from B-C.
Wu says that same information will be used by American courts to consider an extradition request.
Thow was to make an initial court appearance Wednesday in Federal District Court in Portland. Thow, who was last seen travelling over the Canada-U.S. border into Washington State, has yet to appear in a Canadian court to face the criminal charges.
He was arrested on information provided by the RCMP and the Vancouver Integrated Market Enforcement Team, or IMET.
The team's Acting Sgt. Sammy Wu said the same information used to charge Thow will be used to start extradition proceedings against him in the United States.
Former mutual funds dealer
"When we request what we call a provisional arrest warrant from the U.S., we have provided the information in an affidavit. That's how we were able to get the arrest warrant in the United States," he said Wednesday.
The RCMP, Victoria police, the Federal Bureau of Investigation and IMET are all helping in the case.
Before leaving Canada in 2005, Thow allegedly got people to invest in securities that did not exist and put the money in his personal account. Cory Cunningham of the U.S. Marshal's Service said Thow had been living in Seattle before he learned he was wanted by Interpol and Canadian authorities.
The former mutual funds dealer from Victoria still faces more than two dozen criminal charges over allegations he ripped off investors to the tune of $10 million.
In December 2007, the British Columbia Securities Commission imposed its largest ever fine against Thow and banned him from the securities industry after it ruled he used clients' money for luxury cars, a yacht and a personal business jet.
The commission said at the time that Thow preyed on his clients by offering them non-existent securities and instead used the money to support his lavish lifestyle.
"This case represents one of the most callous and audacious frauds this province has seen," the commission said when it imposed the penalty.
Before imposing the sentence the regulator ruled that Thow, who was senior vice-president with Berkshire Investment Group Inc., took millions from dozens, perhaps hundreds of investors in B.C. and Alberta.
Thow's lawyer took the case to the B.C. Court of Appeal, arguing that because Thow's contraventions dated back to 1996 the commission only had the right to impose the maximum penalty at the time of $250,000.
Lawyers for the securities commission acknowledged that Thow's contraventions were dated before it changed the maximum administrative penalty, but said the penalty could be applied retroactively.
Commission lawyers told the Appeal Court in a hearing last September that imposing the fine against Thow wasn't punitive.
In an unanimous decision, three Appeal Court justices disagreed with the commission's lawyers.
In her written ruling, Justice Catherine Ryan wrote the commission wrongly decided it could increase the maximum administrative penalty authorized by 2006 legislation.
The court overturned the $6 million fine and substituted the maximum penalty allowed at the time of $250,000.
With a report from The Canadian Press
