by Carla Wilson, Victoria Times Colonist
November 5, 2014 01:35 PM
A B.C. Securities Commission panel set the amount and ordered the permanent ban for fraud, misrepresentation and breach of regulatory requirements. The monetary penalties and ban were determined following an August ruling that Michaels defrauded investors.
The panel ruled in August that “between June 2007 and December 2010, Michaels, a former mutual fund salesperson, illegally and fraudulently advised 484 clients to purchase over $65 million of exempt market securities (exempt market securities are securities sold under exemptions from prospectus requirements),” a Commission press release.
“The panel found that at least $40 million of the $65 million his clients invested is lost, and most of the rest remains at risk. Michaels was paid $5.8 million in fees and commissions for these activities.”
The panel called Michaels’ business activities “highly predatory,” and said he instilled trust in his clients and then betrayed that trust.
Most of his victims “have little or no opportunity to earn income from work or otherwise financially recover lost amounts,” the release said.
Michaels has been ordered to pay the commission $5.8 million in commissions he obtained as a result of his misconduct, as well as a fine of $17.5 million, it said.
READ THE REST OF THE STORY HERE AT THE TIMES-COLONIST WEBSITE.
MICHAELS PAID FOR A WEEKLY INFOMERCIAL ON C-FAX 1070 RADIO THAT GAVE HIM ACCESS TO THE PEOPLE HE VICTIMIZED
David Baines of the Vancouver Sun says this scam should never have happened, that while he reported what Michaels was doing, authoriities were slow to respond. Read his story HERE.
– See more: HERE