Vancouver lawyer banned from financial markets for role in U.S. fraud
B.C.'s securities regulator has permanently banned a Vancouver lawyer from the financial markets after he was convicted in a U.S. court for his role in a US$34-million fraud.
In 2018, the U.S. Securities and Exchange Commission accused Faiyaz A. Dean of engaging in a "fraudulent scheme to effect illegal, unregistered sales of and manipulate the market" for shares of a company called Biozoom Inc., according to a sanctions decision issued by a panel of the B.C. Securities Commission on Wednesday.
Dean did not participate in the U.S. court proceedings, and a default judgment was entered against him in November 2019, according to the BCSC.
The U.S. court banned him from participating in "penny stock" offerings – defined as those with a price of less than US$5 per share. It also ordered him to pay a civil penalty of US$160,000 to the SEC.
The BCSC decision indicates that the commission's executive director sought to ban Dean from the markets under the commission's authority to reciprocate orders from other financial regulators.
Dean opposed the effort to sanction him, arguing that the U.S. court's default judgment against him meant there had been no findings of fact in the case and the panel therefore could not treat the SEC's allegations as factual.
The panel rejected this argument, writing in its decision:
"It is well-established under United States and Canadian law that a default judgment conclusively establishes the liability of a defendant and any allegations relating to liability are considered true. As a consequence of default, defendants are deemed to have admitted the allegations of the complaint. It is widely held that a court, when faced with a default judgment, is required to accept all of the factual allegations as true."
Dean also argued that his conduct "fell short of market manipulation" and was too tangential to the fraud to warrant sanctions against him, according to the decision.
This claim, too, was unpersuasive to the panel.
"Dean’s fraudulent market manipulation involved artificially high stock prices which were sold to unsuspecting investors who, consequently, suffered harm when the prices fell," the decision reads.
"Dean claims that his role in the fraudulent scheme was 'relatively minor.' He is wrong. He had an essential role in the market manipulation and, because of his actions, investors were harmed."
The panel noted that Dean received almost US$120,000 from his participation in the scheme, which he argued was "for services performed."
He told the panel that the allegations against him did not establish whether the amount he received was for "legitimate professional services," and argued that the panel shouldn't conclude that he was enriched by the fraud.
"Dean’s claim that the money he received from his part in a market manipulation is somehow legitimate is audacious," the panel wrote, rejecting his argument.
"We find that he was enriched."
The BCSC panel banned Dean from trading in or purchasing any securities, derivatives or registered accounts, with limited exceptions for personal accounts purchased through a registered dealer who has been provided with a copy of the decision against him.
It also banned him from serving as a director or officer of any securities issuer or registrant, serving as a registrant or promoter, advising or consulting in the markets, and engaging in promotional activities.
The decision notes that Dean resides in Vancouver and is a non-practicing lawyer in Vancouver. He is currently licensed to practise in Washington state.
The Law Society of B.C. issued a citation against him in June 2021, alleging various instances of misconduct that have not been proven. A hearing on that matter is still to be scheduled, according to the law society's website.
Vancouver Top Stories
CTVNews.ca Top Stories
Humanity at risk: AI pioneer urges federal government to regulate faster
One of the so-called godfathers of artificial intelligence says governments need to move faster on regulations to protect against the dangers of the rapidly advancing technology, before it poses a larger threat to humanity.
Running through middle age can keep brain healthy and neurons wired: study
Exercising as you age can help maintain memory and fight cognitive decline, according to a new study.
Prediabetes: The younger you are, the higher the risk of dementia
People who develop prediabetes when they’re younger are likely to have a higher risk for dementia in later life, a new U.S. study has found.
'We have an influence': How some Canadians are inspiring others to focus on the environment
From actions in their local communities to mass demonstrations, here's how Canadians from all walks of life are inspiring others to take part in helping the environment.
Jan. 6 rioters are raking in thousands in donations. Now the U.S. is coming after their haul
Less than two months after he pleaded guilty to storming the U.S. Capitol, Texas resident Daniel Goodwyn appeared on Tucker Carlson's then-Fox News show and promoted a website where supporters could donate money to Goodwyn and other rioters whom the site called 'political prisoners.'
Venice police investigate bright green liquid in Grand Canal
Police in Venice are investigating the source of a phosphorescent green liquid patch that appeared Sunday in the city's famed Grand Canal.
South Korean arrested for opening plane emergency exit door, faces up to 10 years in prison
A man who opened an emergency exit door during a flight in South Korea was formally arrested Sunday and faces up to 10 years in prison on a charge of violating the aviation security law, officials said.
Hamilton police ask residents to shelter after barricaded man involved in double homicide fires shots
Police in Hamilton, Ont. are dealing with a barricaded person who they say is involved in the deaths of two people.
Attorney for 11-year-old Mississippi boy shot by police says there's 'no way' he could have been mistaken for an adult
An attorney for an 11-year-old Mississippi boy who was shot by a police officer after he called 911 for help said Thursday there was 'no way' the boy could have been mistaken for an adult.
BC Transit offering free rides to cyclists in Victoria next week
BC Transit is offering cyclists free rides for Go By Bike Week in Victoria.
Vancouver Island facing highest monthly cost for nutritious food in B.C.
Everyone is experiencing sticker shock at the grocery store these days, and a new report is putting a dollar figure on how much it’s costing families, per month, to eat healthy.
Road closures coming for Oak Bay half marathon
Commuters should expect road closures in the Oak Bay area on Sunday morning for the Oak Bay Half Marathon.
Alberta NDP holds rally in Calgary, UCP talks about crime, mental health supports
Alberta NDP Leader Rachel Notley held a major rally in downtown Calgary Saturday morning, while her United Conservative rival had no public events planned this weekend after a final pitch to voters a day earlier.
Russia launched 'largest drone attack' on Ukrainian capital before Kyiv Day; 1 killed
Ukraine's capital was subjected to the largest drone attack since the start of Russia's war, local officials said, as Kyiv prepared to mark the anniversary of its founding on Sunday. At least one person was killed.
Police seeking information regarding Friday night hit-and-run in northeast Calgary
Calgary police are investigating a hit-and-run in the northeast community of Renfrew.
Wildfire danger remains high in northern Alberta, but firefighters making progress
The number of wildfires burning in Alberta's protected forest areas has continued to drop.
'It was just adorable': Grade 1 students surprise departing firefighters with special goodbye gifts
An Edmonton Grade 1 class was at the Edmonton International Airport Saturday to give a crew of wildland firefighters handmade thank-you cards and wish them well on their way back to New Brunswick.
'More connected': Researchers looking at growing food under solar panels
Lawns, backyards and roofs could be used to produce both solar power and fresh vegetables, University of Alberta researchers say.
BREAKING | SIU investigating after two people killed in Stoney Creek
Ontario’s Special Investigation Unit (SIU) has been called following an interaction with a man believed to be responsible for a double homicide in Stoney Creek.
Victim rushed to hospital following early morning stabbing in downtown Toronto
One person was rushed to hospital following an early morning stabbing in downtown Toronto.
Animal advocates call for alternatives to coyotes, foxes in Ontario dog training areas
Advocates are hoping the Ontario government will consider alternatives to the use of wild animals in off-leash dog areas for the purpose of tracking as officials push forward with a proposal to expand training areas in the province.
'Pay attention': Family of struck Montreal 10 year old pleads with motorists to drive safely
The family of a 10-year-old girl who was hit by a car almost two weeks ago is appealing drivers and pedestrians to be more careful on Montreal’s roads. Kyaa Guinto is still in a coma at the Montreal Children’s Hospital. “She’s slowly come out of the induced coma, she’s moving her hands, she was able to squeeze our hands, and we’re waiting patiently,” said her mother, Stephanie Ledesma.
Quebec trucker subdues runaway injured horse on Highway 40
Quebecers are used to congestion headaches on Highway 40, but Saturday’s hold-up was nothing if not out of the ordinary: a horse broke free from its transport container and ran free in the fast lane. Marco Lelievre, a trucker, stopped his vehicle while driving through Repentigny, Que. after he saw the runaway horse.
Second Montreal business targeted by arson attack this weekend
A Montreal business was targeted by an arson attack for the second day in a row, this time in the Ahuntsic-Cartierville borough. Police say a 911 call was made just before 5 a.m. Sunday. By the time SPVM officers arrived, firefighters had put out the flames at the bakery on Charles de la Tour Street, near Antonio-Barbeau Street.
RCMP investigating possible drowning at Whiteshell Provincial Park
A Winnipeg boy may have drowned at Whiteshell Provincial Park, according to RCMP.
'Right tree, right place': The work Winnipeg is doing to restore its tree canopy
The City of Winnipeg’s annual push to restore its tree canopy is underway.
Five fire departments respond to Friday night scrapyard blaze
Firefighters in the RM of Springfield were busy Friday night, taking on a scrapyard fire involving molten metal into the early morning hours.
'I don't think it's right': Sask. woman sentenced for aggravated assault on senior
A Prince Albert man said he can start moving on, now that the woman who attacked his 89-year-old father has been sentenced. He said because of the assault, he lost both his mother and father.
Saskatoon woman faces two charges of assault after double stabbing
Saskatoon police have charged a 28-year-old after two people were stabbed.
Why Saskatchewan has a publicly-funded Catholic school system
The Catholic school system in Saskatchewan has a long history and is ultimately protected by the province’s constitution. Something the courts have backed up.
Thunderstorm brings heavy rain, hail, tornado warning to southern Sask.
Environment Canada issued several severe thunderstorm warnings for southern Saskatchewan, threatening hail, excessive rain and a potential tornado.
Construction worker killed in 'serious' accident at Regina International Airport
A construction worker is dead after a serious accident at Regina's International Airport.
Yorkton's Close Cuts 4 Cancer holds 26th annual head shave
Compared to years prior, Brayden Ottenbreit's Close Cuts 4 Cancer had a quiet year in 2023.
Wildfire near Goose Lake, N.S. burning out of control
A sizeable wildfire is burning out of control in Shelburne County, Nova Scotia.
N.B. premier calls for calm amid review of policy on sexual orientation in schools
New Brunswick's premier is calling for calm as the province launches a contentious review of a policy on sexual orientation in schools.
Man shot and killed by police in Dartmouth, HRP refer shooting to SiRT
A man is dead after being shot by police in Dartmouth during an incident Saturday morning.
Free parking to now cost $200 per month as Webster St. apartment ‘renoviction’ saga continues
There is a new chapter in the “renoviction” saga at Webster Street apartments in London, Ont.
Vehicle crashes into house, severs gas line
A large emergency response was seen in the north end of London, Ont. Friday night after a driver allegedly ran their truck into a house.
Taking steps to help combat cognitive loss
Walks were held across the London region Saturday, raising funds to support programs and services offered by the Alzheimer Societies.
Team Canada hockey players Marie-Philip Poulin and Laura Stacey engaged
Celebrated Team Canada hockey players Marie-Philip Poulin and Laura Stacey have announced their engagement.
Two ‘aggressive’ hitchhikers on Hwy. 17 charged
Ontario Provincial Police have charged two people following reports of hitchhikers displaying aggressive behaviour along the Highway 17 East corridor in Kenora.
Ontario community battles to keep emergency department from closing for good
A community in Ontario’s cottage country is facing the permanent closure of its local hospital's Emergency Room.
Three-vehicle crash in Wellington County leaves one dead
One person has died following a three vehicle crash on Highway 6 in Wellington County.
Man arrested for attempted murder, another seriously hurt in Kitchener shooting
The Waterloo Regional Police Service has arrested a man for attempted murder after a shooting in Kitchener left another man with serious injuries.
‘These issues are still here’: Advocates speak out following unhoused experience event in Victoria Park
A 24-hour camp out in Victoria Park, meant to highlight the homelessness crisis, has come to an end.