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GET YOUR MONEY BACK! Misconduct and malpractice. Investment industry "best and worst practices". Information to improve public protection. Expert witness services for industry and investors. Forensic investment analysis. • View topic - Civil or Criminal Actions against companies or regulators

Civil or Criminal Actions against companies or regulators

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Re: Civil or Criminal Actions against companies or regulator

Postby admin » Wed Oct 14, 2015 5:24 am

I just love how easy (and criminally free) investment self-regulators can get away with the financial rape of investors, BY faked financial professionals…….see below quote from IIROC, investment industry "self" regulators in Canada:

Screen Shot 2015-10-14 at 6.17.04 AM.png


"*Use of the word Advisor – what this means:In this investor brochure, we have used the general term “advisor” to refer to a number of official regulatory approval categories such as Registered Representative and Investment Representative. Please note that “advisor” is not an official IIROC approval category for individuals working at IIROC-regulated firms. ”Advisor” is also not being used in this brochure to represent an official registration category."

(This comment is found on page one of this brochure from IIROC….I expect it to be deleted from use as soon as this information is noticed…..oops!) http://www.iiroc.ca/Documents/WhyMatterBrochure_en.pdf (fake "advisors" cost you double and cut your retirement in half…..but "they are richer than you think"…:)

The document that this quote comes from is found online here at IIROC http://www.iiroc.ca/Documents/WhyMatterBrochure_en.pdf

and when it is removed shortly (too candid, too revealing……too honest:) by IIROC it can also be found at the link below

https://drive.google.com/file/d/0BzE_LM ... sp=sharing

Take information such as this to any reputable classaction law firm if you wish to begin the process of getting your money back from professional fraud.

Screen Shot 2015-10-14 at 6.17.24 AM.png


click to enlarge this window
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Re: Civil or Criminal Actions against companies or regulator

Postby admin » Thu Aug 06, 2015 12:24 pm

For a glimpse at a courageous, self-represented litigant, suing TD for fraud of misrepresentation, and deception by those who promise "advisory" services to the public whilst hiding the exact license and duty of care from their clients, see this link:

Alexander Clark v TD

NOTICE TO DEFENDANT(S)
You are being sued for Fraud. You are the defendants.


Screen Shot 2015-08-06 at 1.24.12 PM.png


https://drive.google.com/file/d/0BzE_LMPDi9UOdHczRDc3clcxVzQ/view?usp=sharing

===========


For a look at how CIBC cheated and took away an elderly man's investment accounts, resulting in a court judgement where the judge uses the word "fraud" 155 times, please see the case found here:

Markarian v. CIBC World Markets Inc.
[2006] J.Q. no 5467

Screen Shot 2015-08-06 at 1.23.29 PM.png


http://investorvoice.ca/Cases/Investor/Markarian/Markarian_index.htm


=========

And for the Class Action arguments which I believe apply to millions of North American (Canadian and USA) investors, see this list of seven things cleverly hidden and concealed from most retail investment clients, which I also believe to be actionable:

Advisor Disguise/Deception
The most important class action potential on the horizon today.
Deception and intentional misdirection leads to financial abuse BY so-called financial "advisors" and their sponsoring dealers



http://www.investoradvocates.ca/viewtopic.php?f=1&t=193
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Re: Civil or Criminal Actions against companies or regulator

Postby admin » Tue May 12, 2015 10:11 am

From: larry elford [mailto:lelford@shaw.ca]
Sent: May-08-15 5:56 PM
To: inquiries
Subject: Re: inquiry for registration/legal

Thank you very much for your prompt reply.

I wonder if you might help me one step further in my understanding of the Alberta Securities Act:

I was referred recently to Section 100 of the Alberta Securities Act, which appears to state:

======================
Representation or holding out of registration

100(1) A person or company shall not represent that the person or company is registered under this Act unless

1. (a) the representation is true, and

2. (b) in making the representation, the person or company specifies the person or company’s category of registration under this Act and the regulations.

(2) A person or company shall not make a statement about something that a reasonable investor would consider important in deciding whether to enter into or maintain a trading or advising relationship with the person or company if the statement is untrue or omits information necessary to prevent the statement from being false or misleading in the circumstances in which it is made.


RSA 2000 cS-4 s100;2006 c30 s16 http://www.qp.alberta.ca/documents/Acts/s04.pdf
=====================

Reading the Alberta Act, it would appear that for a person to hold themselves out to be an "advisor", which has "no specific meaning in Alberta securities law", and is a generic term…….

For a person to do this would be to knowingly violate the letter or the spirit of the Act. Further that to do so, if they were actually registered as a "dealing representative", (which is the category which was called "salesperson" prior to 2009) would also be a violation of the letter or the spirit of the Act.

Finally, it would appear to be a marketing attempt to portray oneself as having the professional license qualifications of an "adviser" (otherwise known under the Act as "advising representative), whilst having no such license nor registration, nor qualifications.

It strikes me that it may just be violating either the letter, or the spirit of ALL THREE provisions of section 100 of this Act.

Would you agree with any of this in general terms?

Thank you again for your reply.

Larry Elford

========================================
inquiries <inquiries@asc.ca>
To: larry elford <lelford@shaw.ca>
RE: inquiry for registration/legal

May 12, 2015 10:16 AM


Thank you for contacting the Alberta Securities Commission (ASC)..

Any person who acts as an adviser and is not registered as an adviser under the Securities Act (Alberta) has violated Alberta securities laws (see. section 75 of the Securities Act (Alberta)). The word "adviser" is a defined term in the Securities Act (Alberta) meaning "a person or company engaging or holding itself out as engaging in the business of advising in securities or derivatives."

Regardless of what title a person attaches to himself or herself, we strongly encourage all investors to check if the person or firm from whom they are obtaining investment advice is registered with a securities regulator, a simple step which can be completed via the following website: http://www.securities-administrators.ca ... px?id=1128.

Regards

Screen Shot 2015-05-12 at 11.06.43 AM.png
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Re: Civil or Criminal Actions against companies or regulator

Postby admin » Fri May 08, 2015 2:18 pm

Here then, for the record (along with CSA lead counsel Chris Besko's confirmation of this elsewhere on this site) is how investment customers are deceived in Canada (and the USA with similar tricks) by changing the spelling of a professional license BY ONE LETTER, to skirt the legal duties implied and promised from the law………


1980_2009_08_035.JPG


From: larry elford [mailto:lelford@shaw.ca]
Sent: May-08-15 5:03 AM
To: inquiries
Cc: larry elford
Subject: inquiry for registration/legal

May 8, 2015

To: Alberta Securities Commission
Suite 600, 250–5 Street SW
Calgary Alberta T2P 0R4

Tel:
(403) 297-6454
Toll Free:
1-877-355-0585
Fax:
(403) 297-6156
Web site:
http://www.albertasecurities.com
Inquiries:
Inquiries@asc.ca

Re: Registration inquiry

I write to seek clarification on a question of “spelling style” or legality, whichever may apply, to the use of the words “advisor” and “adviser” by persons under the jurisdiction of the ASC.

Both these words are found commonly in use as a business title, or an implied license and registration category by persons registered under the Alberta Securities Act.

My questions are these:

Am I to understand, as some have suggested, that “advisor” is a “non-regulated title”, as it is not found in the statutes of the Alberta Securities Act?

Or is it merely a spelling variation of the word which is found in the act, namely “adviser”?

It is ultimately confusing for consumers, and may make quite a difference based on the actual registration held by the person using the word or title, and also to the legal duty of care either implied or required, depending upon which meaning or spelling is used.

Can I ask a member of your legal department at the ASC to provide clarity on these 2 questions?

Thank you in advance for any help or clarification that you may be able to provide.

Best Regards,



Larry Elford
===========================================


Alberta Securities Commission Reply

inquiries <inquiries@asc.ca>
To: larry elford <lelford@shaw.ca>
RE: inquiry for registration/legal

Thank you for contacting the Alberta Securities Commission (ASC).

I can tell you that “adviser” is a defined term in the Alberta Securities Act (ASA) meaning “a person or company engaging or holding itself out as engaging in the business of advising in securities or exchange contracts.” Pursuant to section 7.2 (1) of NI-103, there are two categories of registration for a firm that is required to be registered as an adviser: (1) portfolio manager; (2) restricted portfolio manager.

Individuals who conduct registerable activities for a firm registered as a “portfolio manager” or “restricted portfolio manager” must be registered as an “advising representative” or an “associate advising representative” pursuant to section 2.1(1) of NI 31-103.

An “advisor” is a generic term with no specific meaning in Alberta securities law.

As always we encourage the public to check with the CSA to determine the registration status of their adviser.

Kind regards

==========================================================================

OSC Reply

Inquiries@osc.gov.on.ca Wilson <inquiries@osc.gov.on.ca>
To: larry elford <lelford@shaw.ca>
Re: File #20140324-16957 - adviser

Dear Mr. Elford:

Thank you for your inquiry to the Ontario Securities Commission (OSC) concerning the use of the term "advisor" or "adviser".

I believe you asked this question in March 2014. I have reproduced below my response to your correspondence last year, and would add that, since the first website link given in the response is no longer available, you may wish instead to review the information on the OSC's "check registration" page at this link: http://www.osc.gov.on.ca/en/Investors_cbyi_index.htm . Please also note that OSC staff may not provide legal advice or interpret the law on your behalf.

"Thank you for your inquiry to the Ontario Securities Commission (OSC) concerning checking registration for your adviser.

When you refer to "check your adviser" day on March 19, 2014, I believe you are referring to "Check Registration Day". Here is the link to information about this day on the OSC's website: http://www.osc.gov.on.ca/en/NewsEvents_nr_20140318_csa-announce-march19-is-check-reg-day.htm .

"Adviser" is a legal term under securities law that describes a company or individual who is registered to give advice about securities. "Advisor" is not a legal term under securities law.

Investors often refer to the person or firm who provides an investing service to them as their "adviser" or "broker", and this is a common term used in a generic, not legal way. Business titles, designations for courses completed, and professional memberships may be informative, but the important facts for any investor are to know what the person's registration is, what products they are permitted to trade or advise about, and the services they are allowed to provide. It is important to check with the relevant provincial securities regulator to ensure that the individual and company you are dealing with is registered to trade or advise in securities, if that is part of what they are doing.

This link: https://www.securities-administrators.ca/investortools.aspx?id=1128#tools on the Canadian Securities Administrator's (CSA) website provides information about checking registration. You may also find this link to Understanding Registration useful, as it describes the different categories of registration and what they mean: https://www.securities-administrators.c ... ion_EN.pdf .

Since securities law is regulated provincially, if you have specific questions about a company or individual through which you are considering investing, you may wish to check with the securities regulator in your jurisdiction for more information."

Sincerely,

Nicole Plotkin
Senior Inquiries Officer
Ontario Securities Commission
inquiries@osc.gov.on.ca
416-593-8314
1-877-785-1555

=====================

reply from BCSC

May 11, 2015, 11:03 AM

Isaac Filate <ifilate@bcsc.bc.ca>
To: larry elford <lelford@shaw.ca>
RE: seeking interpretation from BCSC

Hi Larry,

Under the BC Securities Act, if a person is engaging in, or is holding themselves out as engaging in, the business of advising another person with respect to the purchase or sale of securities then that person must be appropriately registered or exempt from registration. This is the case regardless of how that person spells ‘adviser/advisor’ in their title. For more detail, please see section 34 of the BC Securities Act (“Persons who must be registered”), the definition of “adviser” at subsection 1(1) of the Act, as well as section 1.3 of Companion Policy 31-103CP (https://www.bcsc.bc.ca/Securities_Law/P ... y_5__2015/).

Best Regards,
-Isaac



Isaac Z. Filaté
Senior Legal Counsel, Legal Services
Capital Markets Regulation Division
British Columbia Securities Commission
1200 - 701 West Georgia Street
Vancouver, BC V7Y 1L2

Tel: 604-899-6573
http://www.bcsc.bc.ca
Email: ifilate@bcsc.bc.ca
Find us on: Twitter | Facebook | YouTube


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Re: Civil or Criminal Actions against companies or regulator

Postby admin » Fri May 01, 2015 1:42 pm

COMING SOON TO A COURTROOM NEAR YOU!!

A FINANCIAL DRAMA

FINANCIAL ABUSE BY FINANCIAL PROFESSIONALS

k-bigpic.jpg


ONE OF THE EARLIEST CASES WHERE INFORMED CLIENTS BEGIN TO LEARN THAT AN INVESTMENT "ADVISOR" IS A NON-REGULATED TITLE AND NOT A PROFESSIONAL LICENSE CATEGORY

When this non-regulated title (advisor) is thrown about by financial professionals, with the strong implication that there is a professional license and duty of care behind the term, and also combined with the common industry-ruse of changing the spelling of the professional "adviser" license by ONE VOWEL (to "advisor) in order to feel justified in skirting the provisions of the laws they strongly imply to follow.


An interesting short read of snippets from a case where the victims stand up to this deception and demand to get their money back. I have seen a few such cases in the past year or two, and I have not yet seen one fail when they apply some of the principles found herein.

I enclose this selection of quotes from a statement of claim filed recently, as partial substitute until I get the actual filed and court stamped case in my hands. It is or paramount importance to all North Americans, as I do not know of more than a few people (I have been in and around the industry for decades) for whom this same statement of claim (of industry deception) would not apply. The deceptions, illusions, misrepresentations are not something that the major newspapers of my country can even risk talking about…..it would be so "un-Canadian" to speak ill of our most trusted financial institutions. It might also threaten tens or hundreds of millions of advertising dollars, and we cannot have that….

This is one client (I know of others) who has lost everything at the hands of the professionals who deceive to derive triple profits. The others I am aware of have already gotten their money back in quiet (gagged) settlements with the bank or financial services institution involved. You will never read of those in any newspaper. Thus, I feel that the selections found herein are quite rare reading, and I hope they will cause Canadians as well as my American friends and neighbours to take positive steps to make themselves aware of "professional abuse BY financial professionals". You are already a victim.


Enclosed some snippets of civil claims either won, filed or contemplated, against banks and investment dealers who use word-magic, illusion and deception to dupe the public, and then take advantage of what the public does not know about the relationship.

Here are some quotes found as filed in Calgary Court of Queen Bench as of today: (actual PDF file to follow (with names) when obtained)

NOTICE TO DEFENDANT(S)
You are being sued for Fraud. You are the defendants.

8.
It was expressed and implied in three (3) NAME REMOVED identified documents that the Plaintiff met with NAME REMOVED Inc. who signed himself off as a “financial advisor”.


9.
It was later revealed the Plaintiff had met with NAME REMOVED who concealed from the Plaintiff that he was registered in the capacity of “Sales Person” of mutual funds with NAME REMOVED INC and not in the category he claimed to represent. Documentary evidence shows that NAME REMOVED represented himself on a NAME REMOVED Internal Transfer Form confirmed and sworn by him in discoveries and at trial as a “Financial Adviser”.


10.
In the result of NAME REMOVED falsified representations and qualifications…..


11.
Clearly these fraudulent misrepresentations were the root cause of NAME REMOVED negligence, and were the causation that induced the Plaintiff’s decisions


12.
The Defendants named in this action were the registrants and responsible for registering NAME REMOVED in the (footnote 2) Canadian Securities Administrators, National Registration. In the result, the defendant’s knew or ought to have known that NAME REMOVED representations of his employment were substantially wrong but took no steps to inform the Plaintiff or the Court and hid this important fact in a fraudulent way.


13.
Factual evidence came to light in mid-2013 that advised the Plaintiff by way of the Canadian Securities Administers, National Registration body that NAME REMOVED committed a “CIVIL FRAUD” by misrepresenting himself to the Plaintiff and the Court while under oath;


14.
That NAME REMOVED was never duly registered in the legal capacity of a “financial adviser” for NAME REMOVED or NAME REMOVED in accordance with the Canadian Securities Administrators, National Registration body and that NAME REMOVED never ever was an employee of NAME REMOVED or NAME REMOVED


15.
That instead, he was registered as being employed by the separate corporate entity of NAME REMOVED INC. Recorded in the Alberta Securities Commission (ASC) as a company registered as a mutual fund dealer only, during the relevant period of DATE REMOVED. In which the mutual fund license code # REMOVEDwas allocated to NAME REMOVED and admitted to be true by him.


16.
And, that NAME REMOVED was never a registered “Financial Adviser” at any time, but was registered at the Canadian Securities Administrators, (CSA), the National Registration body, as a “Sales Person” from 2003 until 2005 with NAME REMOVED INC. (Footnote 3)Mutual Fund Sales Representative are only licensed to advise on and sell mutual fund investment products.


17.
It is an established fact in Supreme Court of Canada binding case law [Parna v. G. & S. Properties Ltd., [1971] SCR 306, 1970 CanLII 25 (SCC) p.316] that; “Fraud is a false representation of fact, made with a knowledge of its falsehood, or recklessly, without belief in its truth, with the intention that it should be acted upon by the complaining party, and actually inducing him to act upon it”.


18.
The Plaintiff was induced to act upon it and placed complete trust and reliance on the promised and implied service of a NAME REMOVED of a “Financial Adviser” in the opening of a NAME REMOVED. And, at NO TIME was it ever disclosed to the Plaintiff that the agent he dealt with NAME REMOVED was registered as a “Sales Person” of mutual funds only and as a consequence, did not have the necessary skills.


20.
To repeat, NAME REMOVED was NOT a duly registered “financial advisor” for NAME REMOVED or NAME REMOVED as represented and sworn by him. Instead was duly employed with the “separate corporate entity” of NAME REMOVED INC. Specifically registered as a seller of mutual funds only and is a member of the Mutual Fund Dealers Association of Canada [MFDA].


21.
This fraudulent misrepresentation was the original, root cause to the losses & damages and a fact of evidence that only the Defendant could know was hidden from the Plaintiff. The Plaintiff was advised by way of the NAME REMOVED Registered Plans Internal Transfer Form that he was dealing with a NAME REMOVED “Financial Adviser”, trusting that NAME REMOVED had the required expertise to what he claimed.


22.
As a result, the acts of misrepresentations, the falsification of NAME REMOVED status of employment as to which NAME REMOVED corporate entity was his registered employer. Was the cause and effect to the wrongful “governance” of the Plaintiff’s Alberta legislated Locked in Retirement Account (LIRA), thereby incurring irreparable damages to the Plaintiff’s retirement plans?


23.
All subsequent harmful consequences to befall the financial affairs and undue stress of the plaintiff were thus, the result of the plaintiff following the implied professional advice of an employee who at no time carried the proper registration or professional skills purported and claimed in writing by the defendants.


24.
Effectively the plaintiff relied on those fraudulent misrepresentations and all actions of dishonesty and bad faith. The original fraudulent misrepresentations exponentially corrupted, disrupted and dislodged all actions and wrongful advice that followed.


25.
Due to NAME REMOVED not having the expected and represented expertise of a NAME REMOVED Financial Adviser and his personal incompetence….


26.
A standard of care was owed to the Plaintiff in proper representations to the opening and administration of his …...


27.
But for the Plaintiff not knowing and could not know that he was dealing with a mutual fund Sales Person and not a NAME REMOVED “financial adviser” who proved to be incompetent….


30.
It is a fact that the Plaintiff was a victim of the Defendants acts of; non-compliance to the Canadian Securities Administrators Registration, Alberta Securities Commission [ASC], Alberta Pension legislation, Pension Benefit Standards Act [PBSA], IIROC (formerly IDA) Self-Regulatory Organization Rules, Income Tax Act and TD Code of Conduct and Ethics. All of which proved the defendants unprincipled indifference for legislation, financial industry SRO rules and guidelines.


31.
But for the Defendants named in this action breaking the law by their false representation that the Plaintiff was dealing with a properly qualified NAME REMOVED Adviser, the Plaintiff would not have entrusted his life savings held in his account to them. Nor would he have moved forward with NAME REMOVED advised retirement plans and all other decisions that caused him irreversible losses and damages that severely changed his position and ruined 10 years of the Plaintiff’s life.


34.
The Plaintiff states that the acts of fraudulent misrepresentations were contrary to the (footnote 5) Defendant’s own published ethical standards!


35.
Further that it was contrary to the CRIMINAL CODE of CANADA, R.S.C., 1985; c. C-4 Sections;
21 (1), a), b) c), PARTIES TO OFFENCES,
6131 (1), MISLEADING JUSTICE-PERJURY,
361 (1), (2), (3) FALSE PRETENCES,
380 (1) (a) (b) (c 1) (d) (e) (f), FRAUD,
397 (1) a) & b) FALSIFICATION OF BOOKS AND DOCUMENTS,
465 (1) (c) CONSPIRACY.
All essential elements of a crime!





Footnote #3 3 Mutual Fund Sales Representative - Canadian Securities Institute;https://www.csi.ca/student/en_ca/career/financial/mfsr.xhtml?lang=en_ca

Screen Shot 2015-05-01 at 2.45.33 PM.png

Investment Advisor Bait and Switch, GET YOUR MONEY BACK! Video related to the concepts behind this case.
https://youtu.be/KH6XMXlfdBw
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Re: Civil or Criminal Actions against companies or regulator

Postby admin » Mon Jan 12, 2015 3:57 pm

B6hmIcqCYAA9x0Q.jpg
Here I repost a case by TD against someone using the arguments of fraudulent misrepresentation:

Here is something interesting...Toronto-Dominion Bank v Christine Cushing 2007 BC Supreme Court

Toronto- Dominion won this case based on "fraudulent misrepresentation"

Here was the case law that cinched the decision in TD's favour: Are you ready for this?

(2) The Representation Must be by Words or Otherwise
[45] A representation can be implied from acts or conduct. In Mewett & Manning
at 852, reference is made to R. v. Barnard (1837), 7 C. & P. 784. In that case the
accused entered into a university shop wearing a student’s academic gown and
obtained goods. The court found that the accused had made a false representation
that he was a student by wearing a student’s gown despite not being a student.




More to come on the topic of fraudulent misrepresentation as it pertains to banks...
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Re: Civil or Criminal Actions against companies or regulator

Postby admin » Sat Dec 27, 2014 10:04 am

Screen Shot 2014-12-27 at 10.00.11 AM.png



Laying criminal charges a.k.a. private prosecutions
Anyone can go to a courthouse and ask a Justice of the Peace (JP) to lay criminal charges – this is also known as commencing a 'public prosecution'. Section 504 of the Criminal Code of Canada states that "Any one who, on reasonable grounds, believes that a person has committed an indictable offence may lay an information in writing and under oath before a justice".

This means that you can allege that a named person ("the accused") has committed an indictable offence within the territorial jurisdiction of the court and the JP is required to receive the information and then refer it to a court hearing where a judge or another JP will then decide whether to issue a summons to the accused.

This process is not an easy one. You need to have detailed information about the alleged offence and be able to convince the court that you will be able to produce evidence (including the names of witnesses) if the prosecution goes ahead. You will also likely be asked to prove that you have already asked the police to investigate the incident and what the results of that investigation were. Most importantly, even if the prosecution does go forward, the Crown Attorney/prosecutor can 'intervene' in the case and either take it on or withdraw the charges.

More information:

1. http://www.attorneygeneral.jus.gov.on.c ... cution.asp

Generally, allegations of criminal activity are reported to the police. After the police investigate, they may lay criminal charges. However, anyone who has reasonable grounds to believe that a person has committed an offence may lay an information in writing and under oath before a Justice of the Peace.
When the information is presented to the court by a private citizen, it is then referred to either a provincial court judge or a designated justice of the peace, who holds a special hearing. The purpose of the hearing is to determine whether a summons or warrant should be issued to compel the person to attend court and answer to the charge.
This hearing, held under s. 507.1 of the Criminal Code, takes place in private, without notice to the accused person. At the hearing, the judge or justice of the peace must hear and consider all of the allegations and available evidence.
The Crown must also receive a copy of the information, get notice of the hearing, and have an opportunity to attend. The Crown may attend at the hearing without being deemed to intervene in the proceedings.
If the judge or justice of the peace decides not to issue a summons or a warrant, then the information is deemed never to have been laid.
If the judge or justice of the peace issues a summons, the person will be served with a copy of the summons, which notifies them of the charge and compels them to attend court. If the judge or justice of the peace issues a warrant, the person will be arrested and brought before a justice.
To avoid any abuse of the private prosecution process, the Criminal Code and the Crown Attorneys Act authorize Crown Counsel to supervise privately laid charges to ensure that such prosecutions are in the best interest of the administration of justice. If a summons or warrant is issued and the case involves an indictable offence, the Crown is required to take over the prosecution. So, a private citizen's right to swear an information is always subject to the Crown's right to intervene and take over the prosecution.
If the Crown intervenes, the Crown will review the matter, as it does in every other criminal case, to determine whether there is a reasonable prospect of conviction and whether a prosecution is in the public interest. If so, the Crown will proceed with the prosecution. If not, the Crown is duty-bound to withdraw the charge.

2. Ontario’s highest court recently discussed the correct procedure for private prosecutions in a case brought by anti-Native Rights ‘activist’ Gary McHale. The decision made it clear that although Crown prosecutors have the right to participate in the court hearing about whether a summons should be issued, the Crown cannot prevent from the hearing from taking place. See: http://www.canlii.org/en/on/onca/doc/20 ... ca361.html

3. Detailed info on private prosecutions is available from the Toronto activist group Advocacy for Respect for Cyclists (ARC): http://respect.to/wiki/pmwiki.php?n=Leg ... eProsecu...


http://movementdefence.org/privateprosecutions
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Re: Civil or Criminal Actions against companies or regulator

Postby admin » Fri Nov 21, 2014 1:53 pm

TD does not come out looking good when this elderly investment victim files court application alleging fraudulent misrepresentation. The posing of persons licensed as "salesperson", posing these persons to vulnerable investors as Financial "advisor" or "adviser" is not exactly keeping with the "fair, honest and good faith" requirements of the industry.

Strongly worded claim is well worth reading, starting on page two for details. See GET YOUR MONEY BACK video related to fraud and misrepresentation by industry participants, for one view of how customers are starting to learn and understand how they have been consciously deceived by financial giants: http://youtu.be/KH6XMXlfdBw?list=UUy8dpTRZHEz-0JBa_l0w7AQ


PDF file of court application linked here: [url] https://doc-0g-54-apps-viewer.googleuse ... p1hscdq5ae
[/url]

Screen Shot 2014-11-21 at 2.05.07 PM.png
from page two of court filed document
Click to enlarge image, click twice to zoom in


PDF file of court application linked here: https://doc-0g-54-apps-viewer.googleusercontent.com/viewer/secure/pdf/aat4k9uiurnvmpm5rp7clmnq12g5hhr7/1tsda55c9qbcbu5h3uoo64dj5siobn71/1416603000000/drive/02280583470938369126/ACFrOgAk59tASfmRTrWmF6fKIuNdmkJn-6F4BcTgTSPIrrm7blSLY17sSrRwIaIDNnacJpeRWF-3fjWl7bmEPB1M2lS4ra-9V3_9nVjvWPtKh7_piu-X-PBXYO0yl9A=?print=true&nonce=q7ud4f7dcoigu&user=02280583470938369126&hash=7l4p4gtq86a37b6kk21b6hp1hscdq5ae
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Re: Civil or Criminal Actions against companies or regulator

Postby admin » Fri Nov 14, 2014 9:21 am

http://business.financialpost.com/2014/ ... contracts/
The Supreme Court of Canada just made honesty in contracts a law


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Honesty isn’t just the best policy — it’s the law, the Supreme Court of Canada has ruled.

In a case released Thursday called Bhasin v. Hrynew, the court said Canadian contract law comes with a duty of good faith that requires parties to perform their contractual obligations honestly.

“Finding that there is a duty to perform contracts honestly will make the law more certain, more just and more in tune with reasonable commercial expectations,” wrote Mr. Justice Thomas Cromwell wrote in the unanimous seven-judge decision.

Commercial lawyers have been following the case closely. Some specific areas of law, such as employment and insurance, come with implied terms of good faith. The question was whether the court might apply the doctrine of good faith to all deals made in Canada.

“I think this is the most important contract case in 20 years,” said Neil Finkelstein of McCarthy Tétrault LLP, counsel for Harish Bhasin, the plaintiff who won the case. “We’re going to find another series of jurisprudence arising out of this case over time about how far this duty of good faith and duty of honesty goes.”

Justice Cromwell acknowledged that the common law has long resisted acknowledging a general duty of good faith in contracting outside those specific areas. The piecemeal approach of Canadian common law is out of step with the civil law in Quebec and in most U.S. jurisdictions, he wrote.

“In my view, it is time to take two incremental steps in order to make the common law less unsettled and piecemeal, more coherent and more just. The first step is to acknowledge that good faith contractual performance is a general organizing principle of the common law of contract which underpins and informs the various rules in which the common law, in various situations and types of relationships, recognizes obligations of good faith contractual performance. The second is to recognize, as a further manifestation of this organizing principle of good faith, that there is a common law duty which applies to all contracts to act honestly in the performance of contractual obligations.”
Mr. Bhasin, the plaintiff, had a business that sold RESPs. He struck a deal to sell his customers RESP products provided by the defendant. The contract automatically renewed every three years. Either party had a non-renewal right on six months’ notice. The written agreement did not require the company to provide a reason for ending the deal.

Mr. Bhasin argued that the contract was terminated in bad faith. He won a judgment in an Alberta trial court, but that decision was overturned by the Alberta Court of Appeal. The provincial appellate court found that the trial court had erred by implying a term of good faith in a deal that contained a clear, unambiguous termination clause.

The Alberta appellate ruling was appealed to the Supreme Court of Canada, which heard the case last February.

Justice Cromwell said the respondent RESP company, which was formerly known as Canadian American Financial Corp. (Canada) Ltd., misled Mr. Bhasin about the circumstances involving the termination of the agreement in May 2001. The judge awarded him damages of $87,000 plus interest.

Eli Lederman of Lenczner Slaght Royce Smith Griffin LLP, counsel for the defendants, said the case fills a gap in Canadian law by creating a general organized principle that parties are to act honestly in the performance of all contractual obligations. Yet that does raise questions, he said.

“What does it mean if you have a generalized duty to act honestly in your contractual obligations? When you exercise a contractual right not to renew an agreement, does that you mean you have to explain your reason for doing so?”

Counsel for Mr. Bhasin argued in their factum that the freedom to contract comes with reasonable limits. Good faith should exist when a party is exercising a discretionary power that can devastate a counter party, they wrote. He was represented by Mr. Finkelstein and Brandon Kain of McCarthy Tétrault LLP, John McCamus of Davis Ward Phillips & Vineberg LLP and Stephen Moreau of Cavalluzzo LLP.

“The law of contracts is not exempt from basic requirements of honesty and fairness,” Mr. Bhasin’s lawyers argued. “One need look no further than the existing jurisprudence of this court, which recognizes the duty of good faith in employment, insurance and tendering agreements, in addition to cases like this one where a discretionary power is exercised for an improper purpose so as to defeat a party’s legitimate contractual objectives.”

Mr. Lederman, Jon Laxer and Constanza Pauchulo of Lenczner Slaght, counsel for the defendant RESP company, countered that the first principle of common law contracting is that parties are bound by the terms they have agreed to, not what they ought to have agreed to. “To succeed in this appeal, Mr. Bhasin must persuade this Court to adopt a radically new contract model which would give effect to new, unbargained for rights and obligations,” they wrote.

Financial Post

(advocate comment: I wonder if investment salespersons who pose as investment "advisors", WITHOUT either holding the correct license, or providing the proper sole-loyalty, duty-of-care to the investor, will now be held to some account for this deception? see The Grand Deception articles at this forum: http://www.investoradvocates.ca/viewtopic.php?f=1&t=193#p3775

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Re: Civil or Criminal Actions against companies or regulator

Postby admin » Mon Nov 03, 2014 1:27 pm

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Interesting case, with some good comments about two year limitation period (waived?) and the weight (rightly or wrongly) placed up on the KYC form:

CITATION: Ridel v. Cassin, 2014 ONCA 763

DATE: 20141103

DOCKET: C57081

Strathy C.J.O., Feldman and Lauwers JJ.A.

BETWEEN

Jean-Marc Ridel, Nadine Suzanne Josephine Ridel and Marc H. Ridel

Plaintiffs/Defendant by Counterclaim

(Respondents/Appellants by Cross-Appeal)

and

Armando Cassin and E3M Investments Inc.

Defendants/Plaintiffs by Counterclaim

(Appellants/Respondents by Cross-Appeal)

Paul Le Vay and Naomi Greckol-Herlich, for the appellants

Philip Anisman, for the respondents

Heard: October 28, 2014

On appeal from the judgment of Justice Sarah Pepall of the Superior Court of Justice, dated April 17, 2013, with reasons reported at 2013 ONSC 2279.

ENDORSEMENT

[1] The trial judge awarded damages to the respondents for their losses arising out of unauthorized investment trading by the appellants. The appellants argue that the action was barred by the limitation period under s. 5(1) of the Limitations Act, 2002, S.O. 2002, c. 24, Sched. B. They abandoned their argument that the trial judge erred in her determination of causation. The respondents cross-appeal and seek to recover their payment of taxes on capital gains they incurred through the unauthorized investments. For the reasons that follow, we dismiss the appeal and allow the cross-appeal.

The Appeal

[2] The appellants concede that in the course of the trial judge’s extensive reasons she analyzed the subjective element of discoverability under s. 5(1) (a) of the Limitations Act, 2002. Counsel argues, however, that she did not advert to the objective element of the test under s. 5(1) (b).

[3] We disagree. The trial judge’s reasons fully support the conclusions in the following three paragraphs of her decision:

262 I have found that the Plaintiffs were not familiar with the significant components of their NCAFs when their accounts were opened. Furthermore, they were far from sophisticated. While it is the case that the Plaintiffs received trading slips and monthly account statements from e3m, they had no idea that Mr. Cassin was not entitled to do much of what he did including trading without instructions, completing the NCAFs without meaningful input from the Plaintiffs, investing in unsuitable securities for them, adopting ridiculous risk factors relative to their individual profiles and engaging in other negligent conduct. The Plaintiffs did not know, nor could they have known, that the Defendants had failed to comply with securities regulations and standards. The Plaintiffs thought their losses had arisen solely because of a fallen market, not because they had a wayward RR and an investment dealer that had abdicated its responsibilities. Mr. Ridel knew that losses had occurred but did not know that the Defendants had caused or contributed to them. This is consistent with the absence of any complaints from the Plaintiffs.

263 The Plaintiffs did not have the requisite knowledge contemplated by section 5(1) (a) until Mr. Sandler informed them of the improper handling of their accounts.

264 Furthermore, in my view, a reasonable person with the abilities and in the circumstances of the Plaintiffs ought not to have known of the matters described in s. 5(1) (a) of the Limitations Act, 2002, in the years 1999 and 2000 and following. Their claims are not barred by any limitation period.

[4] In our view, by using the very language of s. 5(1)(b) in the final quoted paragraph, the trial judge shows that she applied the correct test, which has been described as a “modified objective test”: Ferrara v. Lorenzetti, Wolfe Barristers and Solicitors, 2012 ONCA 851, 113 O.R. (3d) 401, at para. 70. Her determination is entitled to deference.

[5] The appellant argued that Mr. Ridel’s conversation with Mr. Cassin in July 2004 showed that he had an understanding of his investments; since he had the ability in July 2004 to make that inquiry with due diligence there is no basis for the argument that discoverability principles could justify a delay of two years before he asked a new adviser to look into his losses.

[6] We reject that submission. The trial judge was clearly aware of that conversation, in which no wrongdoing was disclosed or discussed, and took it into account in reaching her conclusion that a reasonable person with Mr. Ridel’s knowledge and abilities would not with due diligence have discovered the appellant’s wrongdoing any sooner.

[7] We dismiss the appeal.

The Cross-Appeal

[8] On the cross-appeal the respondents seek to recover the amounts that they were obliged to pay as capital gains tax on the initially profitable investment transactions pursued by the respondents. The trial judge held, at para. 265:

This claim was not asserted until the Statement of Claim was amended on August 18, 2009, well after the Plaintiffs had obtained professional advice on the handling of their accounts and their financial losses. The claim for taxes is barred by the two year limitation period.

[9] We allow the cross-appeal. The amendment increased the amount claimed by almost $100,000 to reflect the result of the investment strategies adopted by Mr. Cassin. These strategies were characterized in the following manner in the statement of claim:

He adopted high risk strategies involving short term trading that generated commissions disproportionate to the profits earned and substantial capital gains. In doing so, he breached his duties as a fiduciary, was negligent, and failed to comply with the standards required of registrants under the Securities Act and with the Rules of the IDA. [The amendment is underlined.]

[10] The evidence amply bears out the accuracy of this statement, as set out in the trial judge’s reasons. In our view, this was not the assertion of a new cause of action, which would have been barred by the Limitations Act, 2002, but was simply a claim for additional damages arising from an existing cause of action: Bazkur v. Coore, 2012 ONSC 3468; Ivany v. Financiere Telco Inc., 2011 ONSC 2785, at paras. 26-33. The tax liability arose out of the wrongful and unauthorized trading activity of the appellants: Hunt v. TD Securities (2003), 66 O.R. (3d) 481, at para. 193. It was a dead loss to the respondents that is simply to be added to the loss of their investment money.

[11] The respondents are entitled to the amount claimed on the cross-appeal together with pre-judgment interest from February 9, 2010, which is the date on which the taxes were paid.

[12] Costs are fixed in the agreed amount of $25,000, payable to the respondents.

“G. R. Strathy C.J.O.”

“K. Feldman J.A.”

“P. Lauwers J.A.”



see also this youtube video on the industry "setup" of clients with the KYC as it is commonly practiced today to harm investors:

http://youtu.be/G0eqlwSUpH8?list=UUy8dp ... JBa_l0w7AQ
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Re: Civil or Criminal Actions against companies or regulator

Postby admin » Mon Sep 29, 2014 10:13 pm

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click to enlarge image, click twice to zoom in

Private Citizen Laying Charges

(Excerpts Primarily from Ontario Attorney General Website)

If you have reasonable grounds to believe an offence has been committed contrary to a provincial or federal statute [e.g.. Criminal Code of Canada], a regulation made under that statute, or a municipal bylaw, you may prosecute the offender yourself. Before launching a private prosecution, you may want to make a complaint to the police. If the police refuse to lay charges and you believe there is enough evidence of an offence to support a conviction, you may lay your own charges.

Generally, allegations of criminal activity are reported to the police. After the police investigate, they may lay criminal charges. However, anyone who has reasonable grounds to believe that a person has committed an offence may lay an information in writing and under oath before a Justice of the Peace.

When the information is presented to the court by a private citizen, it is then referred to either a provincial court judge or a designated justice of the peace, who holds a special hearing. The purpose of the hearing is to determine whether a summons or warrant should be issued to compel the person to attend court and answer to the charge.

This hearing, held under s. 507.1 of the Criminal Code, takes place in private, without notice to the accused person. At the hearing, the judge or justice of the peace must hear and consider all of the allegations and available evidence.

The Crown must also receive a copy of the information, get notice of the hearing, and have an opportunity to attend. The Crown may attend at the hearing without being deemed to intervene in the proceedings.

If the judge or justice of the peace decides not to issue a summons or a warrant, then the information is deemed never to have been laid.

If the judge or justice of the peace issues a summons, the person will be served with a copy of the summons, which notifies them of the charge and compels them to attend court. If the judge or justice of the peace issues a warrant, the person will be arrested and brought before a justice.

To avoid any abuse of the private prosecution process, the Criminal Code and the Crown Attorneys Act authorize Crown Counsel to supervise privately laid charges to ensure that such prosecutions are in the best interest of the administration of justice. If a summons or warrant is issued and the case involves an indictable offence, the Crown is required to take over the prosecution. So, a private citizen's right to swear an information is always subject to the Crown's right to intervene and take over the prosecution.

If the Crown intervenes, the Crown will review the matter, as it does in every other criminal case, to determine whether there is a reasonable prospect of conviction and whether a prosecution is in the public interest. If so, the Crown will proceed with the prosecution. If not, the Crown is duty-bound to withdraw the charge.

http://www.ona.org/documents/File/healt ... harges.pdf

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images.jpeg (9.74 KiB) Viewed 17374 times


(advocate comments: Is it time for ordinary citizens to bypass police and crown and file their own criminal charges when warranted? What choices are left when corporations can control both the courts AND the legislatures? Fracking, financial abuse by financial professionals, captured securities regulators, crony energy regulators et all. Can they be held to account to protect the public interest, or prosecuted when failing to do so?)

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Re: Civil or Criminal Actions against companies or regulator

Postby admin » Fri Sep 26, 2014 8:40 am

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Legal wrangle sheds light on Ontario’s unique securities regulation regime

ADRIAN MYERS
Special to The Globe and Mail
Thursday, September 25, 2014 5:00AM EDT
This is the story of the First Leaside Group, a residential real estate investment firm located in Uxbridge, Ont. It is not a happy story – a lot of people lost a lot of money, and the Ontario Securities Commission alleges (and the Investment Industry Regulatory Organization of Canada has already found) that this happened because First Leaside’s founder David Charles Phillips and one of its salesmen, John Russell Wilson, were unscrupulous in their business practices.

But it’s also a story about some weird legal wrangling that puts an amusing spin on an otherwise unfortunate situation, and maybe teaches us a little bit about Ontario’s unique securities regulation regime.

The easiest place to begin is in the fall of 2011 when First Leaside raised $18.6-million from investors over a two-month period. Trouble was, when raising this capital, the OSC alleges that First Leaside failed to inform investors of the contents of an OSC-requested viability study of First Leaside by the accounting firm Grant Thornton Ltd.

The study did not suggest that First Leaside was particularly viable. It suggested that First Leaside would be in some trouble if it were unable to raise new capital. Mr. Phillips and Mr. Wilson went about raising such capital. Unfortunately, according to the OSC, they failed to inform investors of the contents of the report.

After soliciting investors for about two months, a First Leaside subsidiary was placed on an IIROC early warning list, and First Leaside agreed to a voluntary cease trade order with the OSC. Unable to raise further capital due to the cease trade order, First Leaside was forced to stop distributions to investors. First Leaside then filed for creditor protection and was subject to a wind-up proceeding that left investors with a small fraction of the $300-million or so they were owed by First Leaside. This led to an OSC fraud proceeding that has yet to be decided and, more interestingly, a lawsuit by First Leaside investors against the OSC.

In some sense, the investor lawsuit was inevitable. Investors were left in the lurch when a court turned over First Leaside’s shells and found many fewer peas than investors initially put in. To be made whole, they needed to find someone culpable who could actually satisfy their debts. So, in January of this year, the investors that bought First Leaside securities during the fall of 2011 forwarded an interesting theory, alleging in a civil lawsuit that because the OSC knew about the Grant Thornton report the OSC is responsible for their losses.

This theory has the advantage of potentially allowing the investors to recover from a solvent entity as opposed to a hollow corporate shell. Deep pockets are important in litigation, and few have deeper pockets than the OSC. As I’m sure you’ve guessed by this point, it also has the disadvantage of being a long shot. The Securities Act gives broad protection to the good-faith actions or inactions of the OSC – it avoids punishing the regulator unless its actions were more than incompetent.

This brings us to a few weeks ago, where Mr. Phillips’ and Mr. Wilson’s lawyers appealed to the OSC for a stay in the commission proceedings until the civil lawsuit with investors is resolved. Their theory is that there is an incentive for the OSC, during the commission proceedings, to rule against First Leaside in order to cover its own hindquarters. Mr. Phillips and Mr. Wilson claim that this creates the appearance of a conflict of interest on the part of the OSC.

This is a creative idea. The courts will decide whether the responsibility for the transmogrification of nearly $300-million of investor funds into a revenue wasteland in desperate need of a new capital injection lies with management or the OSC. Regardless, it takes quite the set of legal cojones to use a long-shot investor lawsuit against the OSC as an argument that a decision in your related OSC fraud proceeding be stayed due to a conflict of interest.

Of course, the mere possibility of this motion is caused by the unique structure of the OSC. What we call the Ontario Securities Commission is really a lot of things – it is policy development, it is a regulatory compliance team, it is a litigation law firm and it is a quasi-judicial tribunal, each one located on a different floor, or different half-floor, of the office building located at 20 Queen St. West in Toronto.

By virtue of this, almost everything the OSC does looks, on some level, like it could be a conflict of interest. Every OSC proceeding features OSC staff prosecuting a claim against a defendant to a tribunal of OSC employees. Even if the civil lawsuit against the OSC resulted in a verdict that the OSC was at fault in not shutting down First Leaside earlier, it’s hard to understand how that verdict affects the optics of the tribunal’s judgment, since the tribunal is always put in the position of having to render a verdict on the work of another branch of the OSC.

This is the upshot of our securities regulatory system – one body is tasked with multiple roles. If the system is working properly, each branch of the OSC executes its functions independently and without influence from the other branches. The fact that the branches are all located in one building is irrelevant to the independence of the regulator.

Incidentally, First Leaside was found to be in an actual conflict of interest in a 2013 IIROC decision banning both Mr. Phillips and Mr. Williams from receiving IIROC approval. In that case, the IIROC tribunal found that the big thing called First Leaside featured one bigger thing owned by Mr. Phillips and that big thing owned smaller things that investors put their money into. IIROC found that Mr. Phillips benefited by having the bigger thing charge its smaller subsidiaries, and therefore First Leaside’s investors, “rapacious fees.”

Maybe First Leaside thought it could apply this same logic to the OSC. But this logic arguably misunderstands what the OSC is.



Advocate comment: visit http://www.albertainvestorsprotection.com and http://www.albertafraud.com/albertafrau ... lcome.html for info of victims of financial abuse BY financial professionals, with many victims (thousands) concluding that the securities commissions are willfully blind to abuse by professionals and may in fact act more like handmaidens to same due to regulatory capture. Draft statement of claim found on the AlbertaFraud website outlines only a portion of examples of these acts.
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Re: Civil or Criminal Actions against companies or regulator

Postby admin » Mon Aug 11, 2014 1:25 pm

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The simple daily practice by the investment industry of putting forth their commission sales agents, with licenses of "dealing rep" (in Canada), or "broker" (in USA), as "advisors" without the license, registration, duty or legal obligation of licensed and registered "advisor" or "adviser" meets the standards outlined below for simple fraud:

Many of the provincial securities acts have provisions prohibiting fraud.3

The test for fraud under the various securities acts was set out in the British Columbia Court of Appeal’s decision in Anderson v. British Columbia (Securities Commission)4.

That case determined that fraud in the regulatory context requires proof of both the actus reus (the wrongful act or omission) as well as mens rea (mental element). In its reasons, the Court held that fraud under securities acts must meet the legal test for fraud set out under the Criminal Code and considered by the Supreme Court in R. v. Théroux5.

In R. v. Théroux Justice McLachlin stated:

... the actus reus of the offence of fraud will be established by proof of:

1. the prohibited act, be it an act of deceit, a falsehood or some other fraudulent means; and
2. deprivation caused by the prohibited act, which may consist in actual loss or the placing of the victim’s pecuniary interests at risk.

Correspondingly, the mens rea of fraud is established by proof of:

1. subjective knowledge of the prohibited act; and
2. subjective knowledge that the prohibited act could have as a consequence the deprivation of another (which deprivation may consist in knowledge that the victim’s pecuniary interests are put at risk).6
The Court stated in Anderson that fraud in the regulatory context requires “evidence that is clear and convincing proof of the elements of fraud, including the mental element”.

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Re: Civil or Criminal Actions against companies or regulator

Postby admin » Wed Aug 06, 2014 4:50 pm

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I re-post this exploited investor's blog about criminal code, with the following lament:

In an industry as supremely "self" regulated as investment finance and banking, it appears that the criminal code simply is just NOT applied. The self protection of self regulation is better than that (protective elements) surrounding even the tobacco industry of the last century. Following is the blog post and link:


http://truth4achange.wordpress.com/2014 ... urities-2/

Criminal Code of Canada Notes on False Pretenses, False Statements, Fraud Involving Securities
Posted on March 5, 2014 by smarstan
Criminal Code of Canada Notes on False Pretenses, False Statements,
Fraud Involving Securities

Summarized from Martin’s Criminal Code 2010

Found at http://investoradvocates.ca/

False Pretence / Exaggeration / Questions of Fact

361.1 (1) A false pretense is a representation of a matter of fact either present or past, made by words or otherwise, that is known by the person who makes it to be false and that it is made with fraudulent intent to induce the person to whom it is made to act on it.
(2) Exaggerated commendation or depreciation of the quality of anything is not a false pretence unless it is carried to such an extent that it amounts to a fraudulent misrepresentation of fact.

False Pretence or False Statement

362. (1) Every one commits an offence who
(a) by a false pretence, whether directly or through the medium of a contract obtained by a false pretense, obtains anything in respect of which the offence of theft may be committed or causes it to be delivered to another person;
(c) knowingly makes or causes to be made, directly or indirectly, a false statement in writing with intent that it should be relied on, with respect to the financial condition or means or ability to pay of himself or herself or any person or organization that he or she is interested in or that he or she acts for, for the purpose of procuring, in any form whatever, whether for his or her benefit or the benefit of that person or organization.

Obtaining credit by fraud or false pretense [subsec. (1)(b)] … Furthermore, there is a presumption that where money was obtained by a false pretense, prima facie , there is an intent to defraud.

Obtaining Execution of Valuable Security by Fraud

363. Every one who, with intent to defraud or injure another person, by a false pretense causes or induces any person
(a) to execute, make, accept, endorse or destroy the whole or any part of a valuable security, or
(b) to write, impress or affix a name or seal on any paper or parchment in order that it may afterwards be made or converted into or used or dealt with as a valuable security,
is guilty of an indictable offence and liable to imprisonment for a term not exceeding five years. R.S., C-34, s. 321.

The following is extracted from the Justice Department Criminal Code of Canada:

Forgery and Offences Resembling Forgery

FORGERY / Making false document / When forgery complete / Forgery complete though document incomplete.

366. (1) Every one commits forgery who makes a false document, knowing
it to be false with intent
(a) that it should in any way be used or acted on as genuine, to the prejudice of anyone whether within Canada or not; or
(b) that a person should be induced, by the belief that it is genuine, to do or to refrain from doing anything, whether within Canada or not.
(2) Making a false document includes:
(a) altering a genuine document in any material part;
(b) making a material addition to a genuine document or adding to it a false date, attestation, seal or other thing that is material; …
(4) Forgery is complete notwithstanding that the false document is incomplete or does not purport to be a document that is binding in law, if it is such as to indicate that it was intended to be acted on as genuine. R.S., c. C-34, s. 324.

Cross References

374. Drawing document without authority.

375. Obtaining by forged document.

This section describes the offense of forgery. Every person who makes a false document, knowing it to be false, with the intent that it should be used as genuine to the prejudice of another person, or that another person should be induced, believing the document to be genuine, to do or refrain from doing anything, commits the offence of forgery.

Annotations – Meaning of “false document”

The provisions of this subsection do not exclude the definition of “false document” in s. 321. Thus the accused may be convicted of forgery where he makes a “false document” as that phrase is defined in s. 321. Specifically, the accused makes a “false document: where he prepares a document which is false in some material particular. A document which is false in reference to the very purpose for which it was created is clearly one which is false in a material particular…
It is not necessarily the case that a document which merely contains a lie falls within the definition of a false document. However, a document which is false in reference to the very purpose for which it was created is one that is false in a material particular within the meaning of s. 321 and therefore capable of founding a conviction under this section. R. v. Ogilvie (1993), 81 C.C.C. (3d) 125, [1993] R.J.Q. 453 (C.A.)

Punishment for Forgery

367. Every one who commits forgery
(a) is guilty of an indictable offence and liable to imprisonment for a term on exceeding ten years; or
(b) is guilty of an offence punishable on summary conviction. R.S.C., c. C-34, 325; 1994. C. 44, s. 24; 1997, c. 18, s. 24.

Cross References

Forgery is defined in s. 366. This offence may be the basis for an application for an authorization to intercept private communications by reason of s. 183. Forgery is an enterprise crime offence for purposes of Part XII.2

This section describes the offence of uttering a forged document. Any person who, with knowledge that a document is forged, uses or acts upon it as though it were genuine is guilty of the offence of uttering. … that an intention to defraud is not an element of the offence under this section. Rather, the intent required is the intent to deceive, such an interpretation is consistent with the forgery offense defined by s. 366(1)(b) which as well does not require proof of an intent to defraud.

Drawing Document Without Authority Etc.

374. Every one who
(a) with intent to defraud and without lawful authority makes, executes, draws, signs, accepts or endorses a document in the name or on the account of another person by procuration or otherwise, or
(b) makes use of or utters a document knowing that it has been made, executed, signed, accepted or endorsed with intent to defraud and without lawful authority, in the name or on the account of another person, by procuration or otherwise,
is guilty of an indictable offence and liable to imprisonment for a term not exceeding fourteen years. R.S., c. C-34, s. 332.

Synopsis

This section describes the offence of drawing or using a document without authority. Anyone who makes, executes, draws, signs, accepts or endorses a document in the name of or on behalf of another person without lawful authority and with an intention to defraud, or who knowingly makes use of, or utters such a document, commits an indictable offence. The maximum term of punishment is 14 years’ imprisonment.

Obtaining, Etc, by Instrument Based on Forged Document

375. Everyone who demands, receives or obtains anything, or causes or procures anything to be delivered or paid to any person under, on, or by virtue of any instrument issued under the authority of law, knowing that it is based on a forged document, is guilty of an indictable offence and liable to imprisonment for a term not exceeding fourteen years. R.S., c. C-34, s. 333.

Synopsis

This section creates the offence of using an instrument based on a forged document. Anyone who demands, receives or obtains anything, or causes anything to be delivered or paid, by virtue of an instrument issued under legal authority, but knowing that it is based on a forged document, commits an indictable offence. The maximum term of punishment is 14 years…
Sections 487.012 to 487.017 provide procedures for the making of production orders that would require persons to produce documents, data or information to police officers or public officers designated in the order.

HYPERLINK “http://laws.justice.gc.ca/fra/C-46/page-10.html&#8221; \l “codese:487_03-ss:_1_1_” Endorsement
(1.1) The endorsement may be made on the original of the warrant or on a copy of the warrant that is transmitted by any means of telecommunication and, once endorsed, the warrant has the same force in the other province as though it had originally been issued there.
(2) [Repealed, 2007, c. 22, s. 7]
1993, c. 40, s. 15; 1995, c. 27, s. 1; 2000, c. 10, s. 13; 2007, c. 22, s. 7; 2008, c. 18, s. 12.
Annotations – Meaning of Fraud Generally

The classic definition of fraud is found in the judgement Buckley J., in London & Globe Finance Corp. Ltd. (Re), (1903) 1 Ch. 728 at pp. 732-3 “To defraud is to deprive by deceit: it is by deceit to induce a man to act to his injury. More tersely it may be put, that to deceive is by falsehood to induce a state of mind; to defraud by deceit to induce a course of action.”

…Scott v. Metropolitan Police Commissioner (1974) 60 Cr. App. R. 124 (H.L.) [held] that this definition is not exhaustive and that to “defraud” ordinarily means “to deprive a person dishonestly of something which is his or of something to which he is or would or might but for the perpetration of the fraud, be entitled.”
Meaning of “Other Fraudulent Means” Generally: … Other fraudulent means includes mere omission where, through silence, an individual hides from the other person a fundamental and essential information. The silence or omission must be such that it would mislead a reasonable person. R.v. Emond (1997), 117 C.C.C. (3d) 275 (Que. C.A.) leave to appeal to S.C.C. refused 117 C.C.C. (3d) vi.
… The dishonesty lies in the wrongful use of something in which another person has an interest, in such a manner that this other’s interest is extinguished or put at risk. The use is wrongful in this sense if it constitutes conduct which reasonable decent persons would consider dishonest and unscrupulous. R. v. Zlatic [1993] 2 S.C.R. 29, 79 C.C.C. (3d) 466.

… Economic loss does not have to be proven by the Crown and fraud is complete when money is paid for corporate shares to which the accused falsely ascribed certain attributes: R. v. Knelson and Baran (1962), 133 C.C.C. 210, 38. C.R. 181 (B.C.C.A.)

Mens rea – The mens rea of fraud is established by proof of subjective knowledge of the prohibited act, and subjective knowledge of the act could have as a consequence deprivation, in the sense of causing another to lose their pecuniary interest in certain property or in placing that interest at risk. There is no requirement that the accused subjectively appreciate the dishonesty of his acts: R. v. Théroux, [1993] 2 S.C. R. 5, 79 C.C.C. (3d) 449; R. v Zlatic, supra.

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Re: Civil or Criminal Actions against companies or regulator

Postby admin » Tue Aug 05, 2014 12:57 pm

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Criminal Code Of Canada as a -

False Pretence / Exaggeration / Questions of Fact

361.1 (1) A false pretense is a representation of a matter of fact either present or past, made by words or otherwise, that is known by the person who makes it to be false and that it is made with fraudulent intent to induce the person to whom it is made to act on it.
(2) Exaggerated commendation or depreciation of the quality of anything is not a false pretence unless it is carried to such an extent that it amounts to a fraudulent misrepresentation of fact.

False Pretence or False Statement

362. (1) Every one commits an offence who
(a) by a false pretence, whether directly or through the medium of a contract obtained by a false pretense, obtains anything in respect of which the offence of theft may be committed or causes it to be delivered to another person;
(c) knowingly makes or causes to be made, directly or indirectly, a false statement in writing with intent that it should be relied on, with respect to the financial condition or means or ability to pay of himself or herself or any person or organization that he or she is interested in or that he or she acts for, for the purpose of procuring, in any form whatever, whether for his or her benefit or the benefit of that person or organization.

=======================

further to the above, I suspect some abused and exploited investor will someday walk into a courthouse, skip the kangaroo game of the regulators and self regulators, skip the "too busy" stories of the authorities and prosecutors, and file their own privately laid charges, for fraud as rampantly practiced in the retail investment selling industry: (see below)
640px-Cross_ocean_big_ship_stranded.jpg

Advocate comment:
The purpose of this posting is to highlight a "tilting" of rules and enforcement procedures in favour of investment industry players, and at harm to the public.

Of interest in this correspondence between SIPA (Small Investor Protection Association of Canada) and the CSA (Canadian Securities Administrators) is the following:

1. Persons who advertise themselves as investment "advisors" do not have to have that particular license or registration. Regulators will turn a blind eye to misrepresentation that favours the interests of the industry, (despite industry rules prohibiting misrepresentation by commission or by omission) while fooling the public into a false sense of security and trust in industry dealers. Only Quebec regulates and protects the public from title misrepresentation.

2. Investment dealers commonly give fake titles such as "vice president" to top producing commission salespeople, in further attempts to lure the public into a false sense of security and trust in what are mere commission sellers. (regulators also look the other way at this consumer misrepresentative practice)

3. The person (mis) representing his or herself to the public as an "advisor" has neither a fiduciary duty to care solely for the interests of customers, nor a "best customer interests" standard which to adhere to, despite this being strongly implied in the name, the actual license (advising rep) and in the marketing promises of the investment dealers who title their salespeople in this manner. (except in Quebec where they must place the best interests of the customer first)

4. The "suitability" standard is so vague, undefined and self-determined (by the selling dealer themselves) as to be shameful, and as such the email does not speak to it directly. It instead refers to separate bulletins which also do not speak, other than in legal jargon and obfuscating gobbledygook. Research and experience shows that such a vague term allows the VERY LEAST suitable choice, or the highest cost ( and commissions) investments to be sold to consumers, and yet still meet this consumer-cheating standard. Consumers who are not satisfied with that can always raise $500,000 in legal costs, and spend approximately ten years of their life in the courts, to prove otherwise, and the industry likes this fairness "hurdle" just fine.


Now to the email correspondence:



From: Besko, Chris (FINMSC) <Chris.Besko@gov.mb.ca>
Date: Fri, Aug 1, 2014 at 6:43 PM
Subject: Financial Advisor Registration
To: "sipa.toronto@gmail.com" <sipa.toronto@gmail.com>
Cc: CSA ACVM Secretariat <csa-acvm-secretariat@acvm-csa.ca>


Thank you for your letter of March 28, 2014. It was referred to the Registrant Regulation Committee of the Canadian Securities Administrators (which I chair) for a response. We have tried to answer all your questions as fully as possible, but if you have any follow up questions, please feel free to contact me directly.



For ease of reference, we have included your question (in italics) before each response.



Limitation Periods –
(Advocate comment: For purposes of brevity, a section of this email exchange related to Time limitation periods for compliant or civil action was removed. Also to keep this post on the topic of systemic misrepresentation)


Registration Classifications

1. Advising Representative – Is this the current classification for Advisers?

2. Dealing Representative – Is this the current classification for previous Sales Representative?

3. Financial Advisor – This is a common title used but there appears to be no classification. Are

these persons registered as Dealing Representatives?

4. Vice President – Are all vice presidents deemed to be officers of their firms?



The registration categories under securities legislation are set out in National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations. They are: dealing representative, advising representative, associate advising representative, ultimate designated person and chief compliance officer. These are the descriptions that apply to individual registrants for the purposes of registration. An individual who is acting as an adviser on behalf of a portfolio manager will be registered as either an advising representative or an associate advising representative. An individual who is trading in securities on behalf of a dealer (such as an investment dealer, mutual fund dealer, exempt market dealer, restricted dealer or scholarship plan dealer) will be registered as a dealing representative.



We do not prescribe specific titles to be used by those persons who are either dealing or advising in securities. Most securities legislation requires that an individual who holds themselves out as being registered to in fact be registered and to indicate the actual category of registration.
k-bigpic.jpg

(advocate comments: Sadly, 13 provincial and territorial commissions ignore what I believe to be fraudulent misrepresentation or false pretence offences when they turn a willfully blind eye to approximately 150,000 registered "dealing representatives" who for the most part, strongly imply and represent to the public that they are registered as "advisors" (advising representative category).


Financial Advisor, as you noted, is a common title which many persons use, whether they are registered under securities legislation or not. The use of this title is not generally prohibited, and may be used by anyone, including persons who are only licensed to deal in insurance products, mortgage brokers, deposit agents, or employees of financial institutions. Some jurisdictions regulate the use of some titles. For example, in Québec, no person may use the title Financial Planner without holding the appropriate certificate issued by the Autorité des marchés financiers. The title Financial Advisor may not be used by anyone as it is considered similar to the title Financial Planner. Having said that, most jurisdictions do not regulate the use of Financial Advisor, and as such it is widely used.
Screen Shot 2014-03-20 at 8.24.52 PM.png

(Common Sense comment from an investor who was misrepresented and then exploited by these so-called "regulated" investment practices:)
"We do not prescribe specific titles to be used by those persons who are either dealing or advising in securities." Wow! Well perhaps you should, since it is quite a deceptive game being played upon the unsuspecting investor.


As with Financial Advisor, the title of Vice President is increasingly a common title used in the financial services industry. While an officer of a firm may be designated to be a vice president, the use of the title is not reserved to actual officers of a corporation. As such, it is not safe to assume a person described as a vice president is in fact an officer of that corporation.



Suitability –

Does suitability have a common definition for all provinces or territories, and what is the definition? To whom or which license categories does it apply.



CSA staff published on January 9, 2014 CSA Staff Notice 31-336 Guidance for Portfolio Managers, Exempt Market Dealers and Other Registrants on the Know-Your-Client, Know-Your-Product and Suitability Obligations. We believe this notice will assist in understanding the suitability requirement and our expectation of registrants.



Fiduciary –
Does Fiduciary Duty apply to Portfolio Managers and other registrants? To whom or which license categories does it apply?

A common law fiduciary duty may apply to portfolio managers or other registrants, depending on the circumstances. Typically, Canadian courts have identified five interrelated factors to be considered when determining whether “financial advisors” stand in a fiduciary relationship to their clients: vulnerability of the client in the relationship, the trust and reliance that clients place in their advisor, the extent to which the advisor has power or discretion over the client’s account or investments, and the professional rules and codes of conduct of the advisor. In Québec, where a civil law regime applies, the fiduciary duty does not exist since it is specific to the common law. For further information, see Parts 3 and 4 of CSA Consultation Paper 33-403, including specifically the table in Part 4.

Best Interest –
Is this standard in place in Canada? To whom or which license categories does it apply?

Four provinces (Alberta, Manitoba, Newfoundland and Labrador, and New Brunswick) have a statutory requirement that when advisers or dealers have discretionary authority over their clients’ investments, the adviser or dealers must act in the clients’ best interests. Investment fund managers are also subject to a statutory best interest standard all across Canada. In Québec, according to both the general civil law and the Securities Act (Québec), registered dealers and advisers are currently subject to a duty of loyalty and a duty of care and must act in the client’s best interest. The extent of these obligations under the Civil Code varies depending on the legal context and nature of the investment advisory relationship (e.g. discretionary account or non-discretionary account, executing broker only), taking into account the degree of trust, dependence and vulnerability of the client. For further information, see Part 4 of CSA Consultation Paper 33-403.



Hopefully this answers your questions. As mentioned above, please feel free to contact me directly with any follow up questions you might have.

Chris Besko
Acting General Counsel & Acting Director
tel. (204) 945-2561
fax (204) 945-0330

The Manitoba Securities Commission
500-400 St Mary Avenue
Winnipeg, Manitoba, R3C 4K5
Toll Free (Manitoba only) 1-800-655-5244
http://www.msc.gov.mb.ca

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