A British Columbia Securities Commission (BCSC) panel has banned Roberto Castano from any involvement in securities transactions in response to a fraud that caused more than $1.5 million of investor losses, the commission announced Thursday.
The order requires that Castano resign from any position he holds as a director or officer of an issuer or registrant, and bars him from holding any such positions in the future. It also prohibits him from trading in or purchasing any securities or exchange contracts; managing or consulting in the securities markets; and engaging in investor relations activities.
“An investigation by the BCSC uncovered a Ponzi scheme, orchestrated by Castano, in which he issued promissory notes, told investors their money would be used in stock market trades, and promised returns of 5% monthly,” the BCSC says in a news release.
The commission found that he used some funds to pay interest and principal repayments to investors, and used other funds for personal expenses. In addition to the fraud, Castano was not registered to trade securities, and distributed securities without a prospectus.
Castano pleaded guilty in B.C. Supreme Court in 2016 to one count of fraud over $5,000 against eight people, and was sentenced to 27 months in prison. Castano also was ordered to pay seven investors approximately $1.5 million in restitution.