This item is part of Stockwatch's value added news feed and is only available to Stockwatch subscribers.

Here is a sample of this item:

by Mike Caswell

The U.S. Securities and Exchange Commission has won a B.C. court case as part of its effort to collect money from West Vancouver's Frederick Sharp, who the regulator is pursuing over multiple pump-and-dump schemes run on the U.S. markets. The SEC claims that Mr. Sharp helped hidden insiders unload millions of shares through offshore nominee accounts. The scheme generated $1-billion in illegal gains, according to the SEC. (All figures are in U.S. dollars.)

The loss for Mr. Sharp is contained in a ruling that the Court of Appeal for British Columbia released on Wednesday, June 25. The case centres around the SEC's attempts to collect an earlier judgment that it won against Mr. Sharp in Boston on May 12, 2022. A U.S. federal judge ordered Mr. Sharp to disgorge $21.7-million in gains, and ordered him to pay a $23.9-million fine. The judge also permanently banned Mr. Sharp from penny stocks and entered an order barring future violations.

The SEC then came to B.C. looking to collect that money, seeking a local judgment that would recognize and enforce the decision it had won in Boston. Up until that point, Mr. Sharp had ignored the matter, but he contested the B.C. case. Among other things, he claimed that the SEC had failed to properly serve him and that the U.S. federal court in Boston had no jurisdiction over him.

The remainder is available to Stockwatch subscribers.
Sign-up for a FREE 30-day Stockwatch subscription and SEE NO ADS