BCSC panel penalizes investment fraud

The B.C. Securities Commission (BCSC) has permanently banned a British Columbia man who duped an investor out of $1 million from dealing in securities.

A hearing panel of the BCSC also levied a penalty of $600,000 against Timothy Craig Durkin.

In January, a BCSC hearing found that Durkin had defrauded an investor by telling her that a company, SHH Holdings Ltd., owned a Vancouver island hotel, and that by buying a 40% stake in the company, she’d effectively own 40% of the hotel.

In fact, the company had no stake in the hotel, Sooke Harbour House, and the investor’s $1 million has not been repaid.

“The public interest is best served by the development within the securities industry of a culture of compliance and ‘gatekeeping’ against misconduct,” the panel said in its decision.

“Based on the conduct which has been proven here, we consider that the respondents represent a continuing risk of harm to the investing public. Only a broad, multi-decade long prohibition will provide a meaningful level of protection to the public,” it added in ordering the ban.

The panel also banned SHH and ordered the company to disgorge $1 million, although that amount would be reduced by any money the investor recovers in a separate ongoing civil action.

“The evidence so far is that no amounts have been collected,” the panel noted.

James Langton

James is a senior reporter for Advisor.ca and its sister publication, Investment Executive. He has been reporting on regulation, securities law, industry news and more since 1994.