BCSC Fines and Bans Individual and his Entities over Securities Fraud

John Ferdinand Alexander Spangenberg and his entities fined $400k by BCSC.

The British Columbia Securities Commission (BCSC), one of Canada’s financial market regulators for its British Columbia (BC) province, has just announced nearly $400,000 in penalties and the permanent ban of John Ferdinand Alexander Spangenberg (also known as ‘Johny’ and ‘JFA’) and two of his companies in connection with capital markets fraud,

Following a panel investigation in March 2016, the BCSC noted in its statement that Spangenberg – a former resident of Holland – and two of his entities, Odyssey Renewable Growth Inc. and geoTreasuries Clean Energy Limited, had fraudulently raised over $170,000 from at least 6 B.C. residents between June 2011 and December 2013.

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Significant harm has been done to the investors in this case. All of them have lost all of their investments in the corporate respondents.

Investors lost all

He was listed as the sole controlling mind of both companies as a director, and during a March 2016 panel the BSCS said that illegal distributions of securities have been found to have occurred regarding certain investors that Spagenberg and his firms had raised money from.

BCSC cited the panel’s sanctions decision which noted: “Significant harm has been done to the investors in this case. All of them have lost all of their investments in the corporate respondents.”

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An administrative penalty of $225,000 was handed to Spangenberg in connection with the findings, and his firm Odyssey is also required to cough up nearly $70,000, while geoTreasuries is to pay more than $101,000.

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Banned and fined

The combined penalties of nearly $400,000 were ordered by the panel which stated that Spangenberg is severally and jointly liable for the amounts.

As part of the misconduct noted by the regulator, its panel has permanently banned Spangenberg and the two entities from trading or purchasing securities or exchange contracts, as well as from engaging in registration and promotional capacities including management or consulting within capital markets including with regard to investor relation activities, according to a statement from the BCSC today.

 

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