A British Columbia Securities Commission (BCSC) panel has banned a Vancouver man for fraud and ordered him to pay almost $2.3 million in administrative penalties and disgorgement.

Roy Ping Bai controlled a general partnership, RBP Consulting, which also received a permanent market ban, a BCSC release said. Bai and his wife were the only two partners of RBP Consulting, and “Bai was RBP’s sole operating and controlling mind.”

In February the panel found that Bai and RBP received $1,530,000 from investors who were told their funds would be invested in foreign exchange trading. The respondents deposited $129,000 in foreign exchange trading accounts and used the rest of the investors’ funds for other purposes.

Bai and RBP “carried out an extensive campaign of deceit, which was designed to forestall investors from seeking the return of their funds and from learning of the respondents’ misappropriation of their investments,” said the panel.

The panel ordered that Bai resign any position he holds as a director or officer of an issuer or registrant and pay an administrative penalty of $1 million. He has also been ordered to pay a disgorgement of $1,291,000.

The panel also ordered that Bai be permanently banned from:

  • trading in or purchasing any securities or exchange contracts;
  • relying on any of the exemptions set out in the Securities Act, the regulations or a decision;
  • becoming or acting as a director or officer of any issuer or registrant;
  • becoming or acting as a registrant or promoter;
  • acting in a management or consultative capacity in connection with activities in the securities market; and
  • engaging in investor relations activities.

Read the full decision here.