The victims of a failed, unregistered trading scheme will be able to get some of their money back following a settlement reached with the British Columbia Securities Commission (BCSC).
According to the settlement, Jeremy Alexei Benne admitted to violating securities law when, between 2020 and 2023, he raised approximately $255,000 from investors in a scheme that involved trading securities and derivatives on behalf of the investors.
“[Benne] told the investors he could provide a 100% return on their investments in one to three years using a trading strategy that he learned from third party platforms,” the regulator said.
Instead, the BCSC found that he used roughly $75,000 of investors’ money for personal purposes, and that he lost most of the rest of their funds.
In the settlement, Benne admitted to violating securities rules by making “false statements to investors” while engaging in promotional activities.
Under the settlement, Benne agreed to be permanently banned, and he paid $55,000 to the BCSC, which the regulator will distribute to victims of the scheme.
While the amount that Benne paid in disgorgement represents less than the amount he admitted to diverting from the trading venture, the settlement noted that he “provided information to the executive director demonstrating compelling personal circumstances, including an inability to pay a monetary amount that would normally form part of a settlement for the admitted misconduct.”
The settlement also noted that he did return some money to the investors, that he fully cooperated with BCSC investigators, and admitted to the misconduct at an early stage, saving the time and expense of an enforcement hearing.