A B.C. court has upheld a decision of the B.C. Securities Commission to impose a $25,000 penalty on a man who used online bulletin boards to spread false takeover rumours.

The BC regulator found that Jesse Hogan had breached provisions of the Securities Act, including manipulation of the market in five companies that he knew would result in artificial prices for the shares.

On appeal, Hogan argued that the $25,000 administrative penalty did not take into account his ability to pay and was disproportionate to penalties imposed in other cases.

The court was not without sympathy, allowing that it had some reservations about the amount of the administrative penalty. However, on Friday it dismissed the appeal.

Ability to pay and the concept of proportionality do not have the same significance in penalty proceedings under the Act as in criminal sentencing proceedings, the court said.

The standard of review is one of reasonableness. Given the seriousness of Mr. Hogan’s conduct and the need to deter others from similar behaviour, the penalty could not be said to be unreasonable.