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by Mike Caswell

The Alberta Securities Commission has banned and fined Jan Gregory Cerato, a Calgary man who pitched investors a cryptocurrency scheme that would supposedly produce massive returns. The ASC claimed that Mr. Cerato, through something he called "WhaleClub," told investors that they could double their money every two weeks. Those joining his supposed club were required to contribute at least $10,000.

The penalties for Mr. Cerato are contained in a decision that the ASC released on Monday, Sept. 26. The regulator has barred him from the industry for eight years, with the ban including prohibitions on trading, engaging in investor relations, and acting in a "management and consultive capacity" in connection with the markets. Mr. Cerato must also pay a $40,000 administrative penalty and must pay $125,000 in hearing costs. (His ban will remain in force even after eight years if he does not pay the penalty.)

The sanctions arise from a scheme that began in December, 2017. According to the ASC, Mr. Cerato began pitching his WhaleClub to investors, telling them that it was particularly suited to novices. He assured them that it was structured so that they would profit regardless of the direction of the predominant cryptocurrency, Bitcoin.

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