West Vancouver man sentenced to six months in prison for breaching a Commission order
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sept. 29, 2017) - On May 23, 2017, Frederick Johnathon Nielsen (a.k.a. Fred Nelson and Frederick Gilliland), 65, a resident of West Vancouver, pleaded guilty to breaching an order of the British Columbia Securities Commission (BCSC). On September 25, 2017, Nielsen was sentenced in North Vancouver provincial court to six months jail and ordered to pay $10,000 in restitution.
On March 25, 2011, the BCSC issued an order under the Securities Act as a result of Nielsen's sale of shares in Green Farms International Inc. (a private U.S. company) from a boiler room in Surrey, B.C. Nielsen was not registered under the Act to sell securities. Pursuant to the order, Nielsen is banned for 25 years from trading or purchasing securities or exchange contracts (with limited exceptions); acting as a director or officer of any issuer; becoming or acting as a registrant, investment fund manager, or promoter; acting in a management or consultative capacity in connection with activities in the securities market; and engaging in investor relations activities.
Following an investigation by the BCSC's Criminal Investigations Branch, it was found that Nielsen breached the BCSC order when he solicited investments in 2014 from several people in a privately held Canadian company called International Wagering Systems, Inc. (IWS), ultimately securing a $37,500 USD investment from one B.C. resident. This money was supposed to cover the costs of taking IWS public on stock exchanges in Canada and Germany. Nielsen planned to use the capital raised from the future public sale of IWS shares to purchase lottery licenses in Guatemala. Around the same time, Nielsen also attempted to solicit biographical information from individuals for an investment in an unnamed foreign bank, contrary to the order.
About the British Columbia Securities Commission (www.bcsc.bc.ca)
The British Columbia Securities Commission is the independent provincial government agency responsible for regulating capital markets in British Columbia through the administration of the Securities Act. Our mission is to protect and promote the public interest by fostering:
- A securities market that is fair and warrants public confidence
- A dynamic and competitive securities industry that provides investment opportunities and access to capital
Learn how to protect yourself and become a more informed investor at www.investright.org.
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