A former MFDA registrant who was previously fined and banned for fraud has been sent to jail after failing to pay fines of almost $200,000.
Renee Michelle Penko from Surrey, B.C. was sent to jail for 30 days after failing to attend a court hearing, the BCSC said Wednesday in a release. The hearing was part of the commission’s ongoing efforts to collect outstanding fines from Penko, who was a finder in a fraud operated by Thomas Arthur Williams, a former registrant permanently banned for fraud by a BCSC panel in 2016.
In its 2016 sanctions decision, the BCSC ordered Penko to pay an administrative penalty of $40,000 and to disgorge $155,000.
She didn’t pay.
After executing a writ of seizure and sale, which resulted in no assets, and scheduling an examination in aid, which Penko didn’t attend, the BCSC issued a subpoena to debtor to Penko on Nov. 6, 2018. A subpoena to debtor is a collection step that requires debtors to provide information about their financial situations, and can lead to court-ordered payment plans, the release says. Penko failed to attend the subpoena to debtor.
She then failed to attend a required court appearance on Dec. 4.
The BCSC obtained an apprehension order from the court, and on Dec. 31, Penko surrendered to the court. The judge found she was in contempt, and sentenced her to 30 days in jail. The court also ordered her to appear before the court in New Westminster on Jan. 30, 2019.
In addition to the fines issued in 2016, the BCSC imposed conditions on Penko’s registration, and she was banned 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. Her bans and supervision were to remain in effect until the later of the date that she pays her fines and Aug. 17, 2020.
CSA enforcement reports indicate that, in 2016 and 2017, 15 and 17 people, respectively, received jail sentences for Securities Act violations.