BCSC bans convicted fraudster from investment market

VANCOUVER, BC, Feb. 14, 2024 /CNW/ - A B.C. Securities Commission (BCSC) panel has permanently banned a convicted Vancouver fraudster from participating in the investment market.

Jeffrey Shaughnessy had pleaded guilty in provincial court to the Criminal Code offence of obtaining credit by false pretence or fraud. He received a three-month conditional sentence and was ordered to pay $29,000 in restitution. 

In 2017, Shaughnessy convinced two couples to invest in an opportunity that he said was a Magic Johnson speaking event at the Park Hotel. One couple invested $10,000 while the other couple provided two investments totaling $19,000. Instead of using the funds for their intended purpose, Shaughnessy spent it on personal expenses, including at a casino.

Shaughnessy was arrested and charged in 2021 following an investigation by the British Columbia Security Commission's Criminal Investigations Branch.

The BCSC panel concluded that Shaughnessy's "misconduct was extremely serious. He orchestrated a scheme to defraud the investors and used the investors' money for his personal gain."

In explaining its reasons for imposing a lifetime market ban, the panel said, "Shaughnessy's deceptive conduct also demonstrates that he is a significant ongoing risk to the public and the capital markets. The fact that he admitted to his misconduct is not sufficient to outweigh those risks."

Shaughnessy is permanently prohibited from being a director or officer of any issuer or registrant, from becoming a registrant and from trading securities, among other restrictions.

The BCSC imposed sanctions on Shaughnessy under its authority to reciprocate orders by other securities regulators, self-regulatory organizations, exchanges or courts.

Although the BCSC provided him with the opportunity to be heard ahead of imposing the reciprocal order, he did not participate in the hearing.

The B.C. 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

SOURCE British Columbia Securities Commission