The British Columbia Securities Commission has banned a B.C. man from securities markets for 15 years after he lost $2.3 million of investors’ money through unregistered trading.

Michael French cannot buy or sell securities except in limited circumstances, and he cannot be a director or officer nor can he engage in investor relations activities, during the 15-year period.

French admitted that he breached securities laws when he acted as an unregistered portfolio manager in investing money through discretionary trading on behalf of others between June 1, 2000 and June 30, 2003.

He pooled investors’ money in accounts with his own money and traded securities on a discretionary basis through his personal on-line trading accounts and by making private investments. French guaranteed people an annual rate of return of 10% plus a share of any profit in excess of that guaranteed return.

French provided each investor with an annual statement showing their initial investment plus the guaranteed return, but he admitted that he had no expertise or training in investing or advising and he did not address the inherent risks associated with his investing strategy with the investors.

French’s settlement noted that he would have faced a $50,000 sanction had he not been insolvent.