News Release

Vancouver - A British Columbia Securities Commission (BCSC) panel has permanently banned Larry Keith Davis from B.C.'s capital markets for fraud.

In June 2016, the panel found that Davis, a Victoria, B.C. resident, committed fraud when he purported to sell an investor shares in a company that he did not own and instead used the investor's money on personal expenses.

In June 2011, Davis led the investor to believe that he owned shares in a U.S.-based company and that she could purchase the shares through him. The investor paid Davis $4,000 in exchange for 40,000 shares, which he instead deposited into his personal bank account and used on personal expenses. In April 2012, Davis convinced the investor to make a second investment of $3,000 in exchange for 30,000 shares of the same company. The panel found that Davis did not own any shares in the company at the time of either investment or at any subsequent time.

When the investor began asking for her money back in April 2013, Davis repeatedly refused her requests, claiming that her investments were in shares tied to the stock market. The investor never received any shares from Davis, but eventually succeeded in getting the return of her funds from him in Small Claims Court.

In its sanctions decision, the panel noted "While the amount involved in this case is relatively small, the respondent's initial and ongoing deceit is misconduct properly characterized as falling within the most serious misconduct prohibited by the Act."

For his misconduct, Davis has been ordered to pay an administrative penalty of $15,000. He is also permanently banned from trading in and purchasing securities (with limited exceptions), becoming or acting as a director or officer of any issuer or registrant, becoming or acting as a registrant or promoter, acting in a management or consultative capacity in connection with activities in the securities market, and engaging in investor relations activities.

You may view the sanctions decision on our website www.bcsc.bc.ca by typing Larry Keith Davis or 2016 BCSECCOM 375 in the search box. Information regarding disciplinary proceedings can be found in the Enforcement section of the BCSC website.

Please visit the Canadian Securities Administrators' Disciplined List for information relating to persons and companies disciplined by provincial securities regulators, the Investment Industry Regulatory Organization of Canada (IIROC) and the Mutual Fund Dealers Association (MFDA).

About the British Columbia Securities Commission (www.bcsc.bc.ca)

The British Columbia Securities Commission is the independent provincial government agency responsible for regulating capital markets in British Columbia through the administration of the Securities Act. Our mission is to protect and promote the public interest by fostering:

• A securities market that is fair and warrants public confidence
• A dynamic and competitive securities industry that provides investment opportunities and access to capital

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Media Contact:

Alison Walker
604-899-6713 

Public inquiries:
604-899-6854 or 1-800-373-6393 (toll free)
inquiries@bcsc.bc.ca

Learn how to protect yourself and become a more informed investor at www.investright.org