Regulators in British Columbia have permanently banned a Surrey man from any involvement in securities transactions following a fraud case in which investors lost $1.5 million out of $2.5 million.
Roberto Castano previously received a 27-month prison sentence and was ordered to pay $1.5-million restitution after pleading guilty in B.C. Supreme Court in 2016 to one count of fraud over $5,000 against eight people.
An investigation from the B.C. Securities Commission (BCSC) revealed a Ponzi scheme in which he issued promissory notes to investors whom he promised returns of 5% monthly following trades on the stock market.
He eventually raised more than $2.5 million from investors through his company, Skyline Communications, before losing $1.5 million of it.
The provincial regulator determined Castano used some funds to pay interest and principal repayments to investors.
Other funds were for his personal expenses.
“Castano’s conduct was egregious. He knowingly deceived investors,” the BCSC wrote in its order.
“Castano’s participation in the capital markets of British Columbia, given the conduct to which he has admitted, would raise concerns for the protection of the investing public.”
Castano was not registered to trade securities and he distributed the securities in question without a prospectus.
The BCSC has ordered him to resign from any position he holds as a director or officer of an issuer or registrant, and bans him from holding any such position in the future.
Castano did not tender evidence, make submissions or participate in the BCSC’s hearing.
