The British Columbia Securities Commission has permanently banned a White Rock, B.C., man from trading securities and fined him $250,000 for contravening numerous sections of the Securities Act.

On April 25, 2007, a commission panel ruled that Brian David Anderson perpetrated a fraud, made misrepresentations, and distributed securities illegally in his efforts to promote two investments.

Anderson created and promoted Frontier Assets and the Alpha Program, both of which were found to be fraudulent by the panel. He raised approximately $14.7 million for the two investments from 352 investors, 57 of whom were residents of B.C. There is no evidence to suggest this money will ever be repaid.

After receiving submissions regarding sanctions, the panel ordered Anderson permanently banned from trading securities, holding a position as a director or officer of any issuer, except in limited circumstances, and engaging in investor relations. The panel also ordered Anderson to pay $250,000, the maximum administrative penalty available under the Act at the time of his misconduct.

Anderson told the panel in a letter that he was “unable to appear in response” to the findings because he is incarcerated in a New York prison. He also said he is not in a position to pay the fine.

The BCSC responded by stating: “Anderson says that he is facing bankruptcy and will therefore not be able to pay an administrative penalty. However, for the purposes of general deterrence, it is appropriate to impose a penalty to deter other market participants from similar wrongdoing.”