Two men fined $1.2 million by BCSC

A British Columbia Securities Commission panel has sanctioned two men and two companies for illegally raising money from Canadian and U.S. investors.

In December 2011, a commission panel found Daniel Scammell and Casper de Beer guilty of trading securities without being registered and distributing those securities without filing a prospectus.

From September 2006 to December 2008, Scammell and Verified Transactions raised $641,309 from 49 investors in B.C., Alberta and Washington State.

The panel found these securities were distributed illegally; the exemptions from B.C. securities laws that both relied on did not apply to any of the distributions. Additionally, neither Scammell the company were registered to trade securities, and the company has never filed a prospectus in B.C.

From November 2008 to March 2009, de Beer and VerifySmart distributed shares to 50 investors in British Columbia, Alberta, Saskatchewan, Manitoba and Ontario. They raised a total of $575,000.

The panel found these securities to have been distributed illegally; the exemptions from B.C. securities laws relied on by de Beer and VerifySmart didn’t apply to any of the distributions. Neither de Beer nor VerifySmart were registered to trade securities, and VerifySmart has never filed a prospectus in B.C.

For their misconduct, both men are prohibited from trading in securities, purchasing securities or exchange contracts (with limited exceptions). They’re also prohibited from becoming or acting as a director or officer of any issuer, registrant, or investment fund manager for five years.

For the same period, they’re prohibited from becoming or acting as a registrant, investment fund manager or promoter, as well as from engaging in investor relations activities, and from acting in a management or consultative capacity.

The panel ordered Scammell and deBeer to pay the BCSC the $1.2 million obtained as a result of their illegal activity, as well as administrative penalties of $50,000. The prohibitions remain in place until the later of May 14, 2017 and the date these amounts have been paid.

In addition to the orders against Scammell and deBeer, Verified Transactions Corp. and VerifySmart Corp. were permanently cease-traded by the panel.

You may view the decision, called Scammell, deBeer, VerifySmart Corp, Verified Transactions Corp, or 2012 BCSECCOM 176 on the BCSC website.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.