A British Columbia fraudster who deceived investors with a false promise to help the homeless has been fined by the province’s securities regulator.
The British Columbia Securities Commission (BCSC) has ordered Michael Lathigee to pay a penalty of $21.7 million and banned him from trading securities for 15 years. Lathigee was also ordered to pay $2 million in costs to the BCSC.
According to the BCSC, Lathigee and his company, Freedom Investment Club (FIC), raised approximately $21.7 million from 722 investors between 2008 and 2010. Lathigee claimed that FIC would use the funds to purchase and renovate properties, with the profits going towards helping the homeless.
However, the BCSC found that Lathigee and FIC did not use the funds as promised. Instead, they used the money to pay themselves and other expenses, including luxury cars and vacations.
In its decision, the BCSC stated that Lathigee’s actions were “egregious” and “calculated to deceive investors.” The commission also noted that Lathigee had a history of securities violations, including a previous order to pay $21.7 million in penalties and costs for similar misconduct.
The BCSC’s investigation into Lathigee and FIC was prompted by a complaint from an investor who had lost their life savings. The commission hopes that this decision will serve as a warning to others who may be tempted to engage in fraudulent activities.
The BCSC also encourages investors to thoroughly research any investment opportunity and to be cautious of promises that seem too good to be true. If anyone suspects fraudulent activity, they are urged to report it to the BCSC.
In conclusion, the BCSC has taken strong action against Michael Lathigee for his deceitful actions. This decision serves as a reminder that securities fraud will not be tolerated and that the commission will continue to protect investors from such misconduct.
