IIROC reaches settlement with three former All Group reps
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A British Columbia Securities Commission panel has issued $21.8 million in financial sanctions and market bans against Thomas Arthur Williams and his group of companies for fraud and illegal distributions, the BCSC announced on Tuesday.

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

In January 2016, the 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. Of that, approximately $4.9 million was returned to investors, and the rest has apparently been lost.

The ruling follows a decision issued back in January, which found that Williams, who was licensed as an insurance rep until the scheme was uncovered and has also been registered in the securities industry, masterminded the Ponzi scheme.

“Williams used the various Global Entities to perpetrate the fraud. In reality, all of these entities were a single sham investment scheme … None of the Global Entities had any legitimate business purpose,” the panel said in its January decision.

In the penalty decision released Tuesday, the panel said, “Williams’ misconduct requires a significant administrative penalty, which will serve as a deterrent for both him and others who might engage in significant and widespread fraudulent misconduct.”

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. He 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.

Williams and the Global Group of Companies have also been ordered to pay $6.8 million in disgorgement to the BCSC, on a joint and several basis.

The panel also 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.

In addition to Williams and his companies, the panel also issued sanctions against several of the “finders” that Williams used to help him raise money for the scheme. Susan Grace Nemeth has been ordered to pay an administrative penalty of $70,000 and to disgorge $162,500 (she is also banned until at least 2023); Irene Beilstein has been ordered to pay an administrative penalty of $25,000 and to disgorge $22,000 (she is banned until 2019); and Dennis Carl Weigel has been ordered to pay a $5,000 penalty and to disgorge $5,200 (he is banned until 2017).

Additionally, another one of Williams’ finders, who is registered as a mutual fund rep Renee Michelle Penko, was ordered to pay an administrative penalty of $40,000 and to disgorge $155,000. Penko has a condition of strict supervision attached to her registration, and is also banned from certain activities until 2020.

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