BCSC panel bans former registrant, orders penalty of $15M

A British Columbia Securities Commission panel has issued financial sanctions and market bans against Thomas Arthur Williams and his group of companies for fraud and illegal distributions.

The panel has also issued sanctions for illegal distributions against several of the finders that BSCS says Williams commissioned to help him raise money.

BCSC says Williams, a former registrant, controlled the following entities (collectively, the Global Group of Companies):

• Global Wealth Creation Opportunities Inc.;
• Global Wealth Creation Opportunities Inc. (Belize);
• Global Wealth Financial Inc.;
• Global Wealth Creation Strategies Inc.;
• CDN Global Wealth Creation Club RW-TW; and
• 2002 Concepts Inc.

In January 2016, the BCSC panel found that Williams and the Global Group of Companies committed fraud, through a Ponzi scheme, by raising approximately $11.7 million from 123 investors between February 2007 and April 2010.

The BCSC panel also found that Williams, along with certain of the Global Group of Companies and several of the finders used by Williams to introduce investors to the Global Group of Companies, breached securities laws concerning prospectus and registration requirements. The BCSC says the finders found to have committed misconduct were Susan Grace Nemeth, Renee Michelle Penko, Irene G. Beilstein and Dennis Carl Weigel.

In discussing the seriousness of Williams’ and the Global Group of Companies’ conduct, the BCSC panel stated, “The scope of the fraudulent conduct in this case in terms of the number of investors, the amount of money raised from investors and the extent of the deceit visited on investors was extremely significant.”

For his misconduct, Williams has been ordered to pay an administrative penalty of $15 million to the BCSC. The panel also ordered that he must resign any position he holds as, and is permanently prohibited from becoming or acting as, a director or officer of any issuer or registrant.

Williams is also permanently banned from trading in or purchasing any securities, becoming or acting as a registrant or promoter, acting in a management or consultative capacity in connection with the activities in the securities market, and engaging in investor relations activities.

Further, Williams and the Global Group of Companies have been ordered to pay $6.8 million in disgorgement to the BCSC, on a joint and several basis. The panel permanently banned the Global Group of Companies from trading in or purchasing any securities, acting in a management or consultative capacity in connection with the activities in the securities market, and engaging in investor relations activities.

As well, the BCSC panel has ordered that Nemeth, Beilstein and Weigel resign any positions they hold as, and are prohibited from becoming or acting as, directors or officers of any issuer or registrant. They are also banned from trading in or purchasing any securities (with limited exceptions), becoming or acting as a registrant or promoter, acting in a management or consultative capacity in connection with the activities in the securities market, and engaging in investor relations activities.

In addition, says BCSC:

• Nemeth has been ordered to pay an administrative penalty of $70,000 and to disgorge $162,500. Her bans are to remain in effect until the later of the date that she pays her monetary orders and August 17, 2023;
• Beilstein has been ordered to pay an administrative penalty of $25,000 and to disgorge $22,000. Her bans are to remain in effect until the later of the date that she pays her monetary orders and August 17, 2019; and
• Weigel has been ordered to pay an administrative penalty of $5,000 and to disgorge $5,200. His bans are to remain in effect until the later of the date that he pays his monetary orders and August 17, 2017.

Penko, a registrant, has been ordered to pay an administrative penalty of $40,000 and to disgorge $155,000. The BCSC panel also ordered that a condition of strict supervision of Penko’s registrable activities be imposed, in a manner dictated by the panel. She is prohibited from purchasing or trading in securities, acting in a management or consultative capacity in connection with the activities in the securities market, and engaging in investor relations activities, all with exceptions. She must also resign any position she holds as a director or officer of any issuer or registrant. Her bans and supervision are to remain in effect until the later of the date that she pays her monetary orders and August 17, 2020.

Staff

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