Canadian Regulators Report 2020 Spike in Securities Fraud

Posted on July 6th, 2021 at 8:24 AM
Canadian Regulators Report 2020 Spike in Securities Fraud

From the Desk of Jim Eccleston at Eccleston Law:

Canadian securities regulators reported substantial spikes in fraud, insider trading as well as other malfeasance during 2020. The Canadian Securities Administrators (CSA) 2020-2021 enforcement report details the collection of nearly $60 million in fines, restitution, and the termination of at least 60 corporate and personal securities rule-breakers. According to the enforcement report, CSA initiated 52 enforcement actions against alleged fraudsters in the fiscal year, which represents a 37% increase from the prior year. Additionally, CSA reported a 58% increase in the amount of whistleblower tips it received as well as a drastic spike in the number of potential fraud alerts the agency issued. 

For instance, the CSA placed an alert on Mercury Crypto Invest, which allegedly misled investors by promising a guaranteed return on investments in binary options and cryptocurrencies. The report also claims that Canadian regulators thwarted 64 of nearly 150 coronavirus-related fraud schemes faced by the international North American Securities Administrators Association (NASAA). The increase in Canada’s securities fraud actions mirror what is occurring in the United States. For example, the Securities and Exchange Commission (SEC) announced in February that it had issued a record-high $188 million in whistleblower awards in 2020.

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

Tags: eccleston, eccleston law, canadian regulators, securities fraud

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