The man managed investments from 23 investors but lost most of their money
Investors who trusted a British Columbia resident who promised a 100% return on their investments within 1-3 years, lost most of their money.
The British Columbia Securities Commission found that Jeremy Alexei Benne, a BC resident, made false statements to investors during promotional activities. He secured agreements from 23 investors to trade securities and derivatives on their behalf.
With the promise of doubling investments using a trading strategy which he said he learned from a third party platform, Benne raised approximately $255,000 from the investors between 2020 and 2023.
However, the Settlement Agreement between Benne and the Executive Director of the BCSC reveals that Benne used $75,000 of the invested funds for personal purposes and most of the rest was lost, although some money was returned to investors.
The regulator said that Benne’s promotional activity included false statements that a reasonable investors would consider important in determining whether to purchases securities, contrary to the province’s Securities Act.
In deciding what action to take, the BCSC acknowledged Benne’s remorse and his full cooperation with the investigation. Benne voluntarily provided information to investigators, admitted to wrongdoing and made the admissions set out in this agreement at an early stage of the investigation, prior to the issuance of a notice of hearing of this matter, which has resulted in time and cost savings.
Even so, the BCSC decided that a permanent ban from participating in BC’s investment market, including being prohibited from being a director or officer of any issuer or registrant and from becoming a registrant, is the appropriate action. Benne can trade through his own accounts via a registered dealer or registrant.
Benne has paid $55,000 to BCSC which represents funds obtained from his misconduct and which will be paid to his victims.
