The B.C. Securities Commission has banned two Lower Mainland residents from trading securities after they admitted to breaking various securities laws when they solicited funds for a failed investment scheme that raised approximately $9.6 million from 943 investors.
Richmond resident Kerry John O'Neill has been permanently banned from trading securities except in limited circumstances. He is also permanently prohibited from acting as a director or officer of an issuer, registrant or investment fund manager, engaging in investor relations, or acting as a manager or consultant in the securities industry.
In a separate settlement agreement, North Vancouver's Renee Marie Helmig was banned from securities trading for 10 years and acting as a director, officer, manager or consultant in connection with the securities industry.
O'Neill admitted to being the principal of an investment scheme called the Pay It Forward program. He told investors that their funds would be used to buy and sell distressed merchandise and they could expect between 100% of their initial investment and 300% return within 90 days.
He admitted that he committed securities fraud when he used just under $1.1 million of investors' money to purchase merchandise, approximately $6.4 million to pay amounts due to other investors, $56,000 for his personal expenses and $213,000 for other investments. O'Neill used the rest of the funds for expenses related to the distressed merchandise business.
Helmig admitted that she used false information provided by O'Neill to make misrepresentations to investors and potential investors to convince them to invest in the program.
Under both settlements, the BCSC acknowledged that there was no reasonable prospect of O'Neill paying his $500,000 fine and Helmig paying her $100,000 fine, which would otherwise have been assessed.