News Release
Jailed former Chilliwack registered representative banned for 30 years
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Date:
2003-09-09 -
Number:
2003/61
Vancouver – The B.C. Securities Commission has imposed a $200,000 penalty and a 30-year securities market-trading ban against a former registered representative convicted of stealing $500,000 from clients.
Wilfred Lorne Rast, 45, of Chilliwack, is banned from becoming or acting as a director or officer of any reporting issuer and from engaging in investor relations activities for 30 years. He is permanently banned from registering under the Securities Act. Rast is allowed to trade in securities in his own personal account but must do so through a registered representative.
Rast, a registered representative from March 3, 1989 to March 10, 1998, was employed at securities dealer Sector Securities Inc.’s Chilliwack branch office from 1993 to 1998. During his employment with Sector, he stole about $500,000 of client funds that had been given to him to invest. Rast used client money for his own purposes and over a long period of time he attempted to hide or conceal his activities with false statements and dividend payments.
On Jan. 24, 2001, Rast was charged with 21 criminal counts of fraud, forgery and theft of client funds between 1993 and 1998. He pled guilty to ten counts of theft over $5,000 contrary to section 334(a) of the Criminal Code of Canada. On Jan. 27, 2003, Rast was sentenced to three years in jail and ordered to pay back his victims about $500,000.
“What makes this case particularly egregious is that Rast was a registrant under the [Securities] Act and was obliged to deal fairly, honestly and in good faith with his clients. Instead, he dealt with them unfairly, dishonestly and in bad faith,” said the commission panel in rendering its decision.
“Rast’s conduct was highly prejudicial to the public interest,” concluded the panel. “Despite Rast’s good intentions to repay his clients over time, the investing public must be protected from him.”
The B.C. Securities Commission is the independent provincial government agency responsible for regulating trading in securities and exchange contracts within the province. Copies of the decision can be viewed in the documents database of the commission’s website www.bcsc.bc.ca or by contacting Andrew Poon, Media Relations, 604-899-6880.