Securities Violations Result In $45 Million Of Fines; 20 Years Of Prison Sentences - InvestingChannel

Securities Violations Result In $45 Million Of Fines; 20 Years Of Prison Sentences

Fraud, market manipulation, insider trading and other violations in Canada’s securities industry resulted in more than $45 million worth of fines and a combined 19 years of prison time in the year ending March 31, 2020, according to the Canadian Securities Administrator (CSA).

The organization of provincial and territorial securities regulators said four individuals received a total of 18 years and 11 months of jail terms for criminal cases, while eight people received 10 years and eight months of prison time for quasi-criminal cases.

The CSA concluded 23 fraud cases from April 1, 2019 to March 31, 2020, resulting in more than $45 million in penalties and fines. Almost 100 interim cease-trade and asset-freeze orders were issued across all of its cases, while 65 individuals and 33 companies were banned from participating in the capital markets.

The CSA said it issued 66 alerts to warn the public about possible investment scams, most of which were linked to foreign businesses that are not registered to trade securities in Canada but were targeting Canadian investors.

The CSA said it received 291 tips through its whistleblower program over the past year, which allows individuals to report possible securities law violations.