BC's finance minister is instructing the commission to submit proposals for improvement
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The BC Securities Commission (BCSC) is facing criticism after an investigative report revealed that it has failed to collect more than half a billion dollars in fines from fraudsters over the last ten years.
A recent investigation by Postmedia revealed that more than 80 people who defrauded thousands of investors — in BC, other parts of North America, and as far as the US — have avoided paying the biggest fines issued by the BCSC.
From the fiscal year 2007-08 to 2016-17, the commission has collected less than 2% of the $510 million in fines it had issued. Those include various commission panels’ punitive and deterrent fines, as well as orders to pay back proceeds of fraudulent activities. Such activities include Ponzi schemes and pump-and-dump scams.
BC Finance Minister Carole James has issued a statement denouncing the dismal collection record. She is also asking the BCSC to submit proposals on ways the province can modernize its enforcement framework under the BC Securities Act.
“We expect some of the proposals may require working with the federal government and other provincial ministries,” she said in a written statement. She also told the BC Legislature that the province is also exploring ways for it to help improve collection.
When asked what collection target she expected would be realistic, James replied that it was too early to say. “But doing better than we are doing is an important bar,” she said.
For its part, the BC Securities Commission has admitted its collection rate is poor. But collection is difficult in many cases of fraud, it added, because the perpetrators flee, hide their stolen money, or turn out to have spent it.
The Postmedia investigation reportedly uncovered potential assets amounting to $30 million — including a $700,000 house in Las Vegas and a $1.4-million condo in Hawaii — owned by various fraudsters with unpaid penalties.
“We are looking forward to working collaboratively with the Ministry of Finance on possible new mechanisms to bolster our current efforts,” BC Securities Comission media relations advisor Alison Walker told Postmedia Network in an email.
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A recent investigation by Postmedia revealed that more than 80 people who defrauded thousands of investors — in BC, other parts of North America, and as far as the US — have avoided paying the biggest fines issued by the BCSC.
From the fiscal year 2007-08 to 2016-17, the commission has collected less than 2% of the $510 million in fines it had issued. Those include various commission panels’ punitive and deterrent fines, as well as orders to pay back proceeds of fraudulent activities. Such activities include Ponzi schemes and pump-and-dump scams.
BC Finance Minister Carole James has issued a statement denouncing the dismal collection record. She is also asking the BCSC to submit proposals on ways the province can modernize its enforcement framework under the BC Securities Act.
“We expect some of the proposals may require working with the federal government and other provincial ministries,” she said in a written statement. She also told the BC Legislature that the province is also exploring ways for it to help improve collection.
When asked what collection target she expected would be realistic, James replied that it was too early to say. “But doing better than we are doing is an important bar,” she said.
For its part, the BC Securities Commission has admitted its collection rate is poor. But collection is difficult in many cases of fraud, it added, because the perpetrators flee, hide their stolen money, or turn out to have spent it.
The Postmedia investigation reportedly uncovered potential assets amounting to $30 million — including a $700,000 house in Las Vegas and a $1.4-million condo in Hawaii — owned by various fraudsters with unpaid penalties.
“We are looking forward to working collaboratively with the Ministry of Finance on possible new mechanisms to bolster our current efforts,” BC Securities Comission media relations advisor Alison Walker told Postmedia Network in an email.
Related stories:
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