News Release

Vancouver - A British Columbia Securities Commission (BCSC) panel has ordered permanent market prohibitions against Larry Keith Davis. The panel also ordered that Davis pay an administrative penalty of $15,000.

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 its 2016 decision, a BCSC panel ordered permanent market prohibitions against Davis as well as an order to pay an administrative penalty of $15,000. Davis was granted leave to appeal the findings of fraud and the penalties in the decision. In its decision, the Court of Appeal dismissed the appeal from the findings of fraud but allowed the appeal from the decision in part, setting aside the permanent market prohibitions and remitting the issue of those sanctions to the BCSC for reconsideration. The order that Davis pay the administrative penalty was not impacted by the decision of the Court of Appeal.

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. The BCSC found Davis liable for fraud in the amount of $7,000 contrary to the Act.

After the Court of Appeal decision, the panel re-heard the issue of what market prohibition orders would be appropriate and, after hearing from the parties, reinstated permanent orders against Davis. Davis has been ordered to cease trading in, and is permanently prohibited from, purchasing securities, except Davis may trade or purchase securities for his own account through a registrant if he gives the registrant a copy of this decision; any or all of the exemptions set out in the Act, regulations or a decision do not apply to Davis; and Davis resign any position he holds as, and is permanently prohibited from becoming or acting as, a director or officer of any issuer or registrant. Davis is permanently prohibited from:

• 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 decision on our website, www.bcsc.bc.ca, by typing Larry Keith Davis or 2018 BCSECCOM 284 in the search box. Information about disciplinary proceedings can be found in the Enforcement section of the BCSC website.

Please visit the Canadian Securities Administrators' (CSA) 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 of Canada (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:
Andrew Poon
604-899-6880

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