Victims of two illegal investment schemes under investigation in British Columbia are set to receive a portion of nearly US$22.6 million, the British Columbia Securities Commission revealed on Monday.

The settlement relates to the investigation of Exchange Bank and Trust Inc., a private investment bank based in Nevis, West Indies, and related accounts at several Vancouver brokerage firms.

In 2000, the BCSC froze Exchange Bank’s Vancouver bank account, alleging that Edward Durante and Stephen Sayre had violated U.S. and Canadian securities laws and deposited ill-gotten gains into the accounts.

After a review of claims by a court-appointed receiver and a settlement among the valid claimants, a B.C. Supreme Court judge ordered that most of the money – approximately US$15.2 million – go to the U.S. Securities and Exchange Commission for distribution back to victims of the illegal investment schemes.

The remaining funds went to other parties in partial settlement of their valid claims, except for approximately US$1 million that will be paid into the court pending a further order.

“The money that flows through international investment frauds often disappears,” said Brenda Leong, BCSC executive director, in a statement. “In this case, collaboration between the BCSC and SEC will result in millions of dollars being returned to investors.”

The BCSC and SEC traced proceeds of manipulative trading by Durante and Sayre to the Vancouver accounts. The BCSC used this information to obtain the appointment of a receiver. The BCSC worked with the SEC during the court process to ensure money would flow back to investors.

In 2004, a BCSC commission panel issued permanent market bans and an administrative penalty against Durante. Sayre and Durante are both serving U.S. prison sentences.