Fraudster raised $1.2 million from investors in illegal distribution
BCSC returns nearly $40,000 to investors who lost much more
Abusive scheme exploited consultant exemption, regulator alleged
No evidence that executive tried to hide insider trades
Bulk of funds issuers raised went to consultants that quickly dumped shares
The funding comes from enforcement sanctions
Panel said penalty should be bigger than regulator requested
As millions in sanctions remain unpaid, BCSC orders $70,000 to be returned to investors
Under 2020 changes, the regulator can target under-valued asset transfers
Regulators propose long-awaited reforms to enhance industry dispute-resolution system