The British Columbia Securities Commission has permanently banned a man from the securities markets, and ordered over $2.1 million in monetary sanctions, for committing fraud and engaging in unregistered trading.
In March, a commission panel found that Michael Robert Shantz committed fraud through his company, Canada Pacific Consulting Inc. (CPC), by soliciting German and Swiss residents to open trading accounts with the firm in order to conduct gold futures or foreign exchange trading. The regulator says that 11 German and Swiss investors deposited $1.5 million with CPC, but that none of those funds were invested as promised. Instead, $1.2 million was wired to bank accounts in Spain for unknown purposes, and it says that Shantz also consumed $210,000 for his own personal use.
The BCSC says that the firm also attempted to make it appear that it had substantial operations, when in fact its Vancouver was only a façade, and there was no office in Richmond, B.C. It also says that CPC sent investors falsified account statements showing profits where none existed.
On Wednesday, the BCSC said that Shantz is permanently banned from trading in securities, purchasing securities or exchange contracts, and from becoming a director or officer of any issuer or registrant. He is also permanently prohibited from becoming a registrant, investment fund manager or promoter, from engaging in investor relations activities, and from acting in a management or consultative capacity in connection with the securities market. He was also ordered to disgorge the $1,530,004 he obtained as a result of his illegal activity, and was hit with an administrative penalty of $630,000. CPC was cease traded, too.