BCSC panel orders 7-year ban

By Staff | April 3, 2019 | Last updated on April 3, 2019
1 min read
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Regulators in British Columbia have banned a man for seven years after finding that he sought to hide his control of a shell company.

A hearing panel of the British Columbia Securities Commission (BCSC) ordered that Matthew John Hamilton be banned for seven years for violating securities rules by concealing his control over a publicly-traded shell, Guru Health Inc., that traded on the U.S. OTC Bulletin Board.

According to the panel, among other things, Hamilton hid his control of the firm by installing nominee directors and officers, filing false disclosure documents with securities regulators, and “conceal[ing] his identity from critical gatekeepers in the capital markets.”

It ruled that this conduct “was abusive to the capital markets” and that he should be sanctioned for it.

The panel said Hamilton acknowledged that the misconduct was serious but argued that he was naive. He asked for no market prohibitions, while BCSC staff sought a lifetime ban.

Ultimately, the panel concluded that while the misconduct was “extremely serious,” it didn’t warrant a lifetime ban. Instead, it ruled that “broad market prohibitions lasting for seven years to be in the public interest and proportionate” in the case.

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The staff of Advisor.ca have been covering news for financial advisors since 1998.