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by Mike Caswell

A group associated with West Vancouver's Frederick Sharp has appealed bans and fines that the U.S. Securities and Exchange Commission won against them for multiple pump-and-dumps on the U.S. markets. The SEC said that the group was part of the operation run by Mr. Sharp, in which hidden insiders unloaded millions of shares, often amidst paid promotions. The scheme generated at least $1-billion in gains, according to the SEC. (All figures are in U.S. dollars.)

The appeals are contained in separate notices that Mr. Sharp's associates filed in federal court in Boston on Aug. 19, 2024. The SEC previously won judgments against the group that permanently banned them from penny stocks and included fines totalling $5.86-million. The judge also ordered that some of the defendants were jointly liable with Mr. Sharp for disgorgement of up to $42.5-million in gains.

Among those appealing are Vancouver-area residents Mike Veldhuis, Paul Sexton and Jackson Friesen, who were clients of Mr. Sharp's service. The SEC said that the men were part of a group that participated in three pump-and-dumps, including a $45.6-million scheme with a company called Stevia First Corp. from 2012 to 2018. The SEC claimed that the men unloaded millions of shares through Mr. Sharp's service amidst promotional e-mails that told investors to "Get in now; this is huge" and "Buy STVF right now!"

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