Two B.C.-based companies to pay $205,000 for unregistered trading
Vancouver – Two B.C.-based investment companies have agreed to pay a combined $205,000 to the British Columbia Securities Commission (BCSC) for trading in securities without being registered.
The BCSC entered into settlement agreements with two members of the Peterson group of companies, Peterson Investment Holdings Inc. and Peterson Investment Group Inc. Peterson Holdings invests in and holds title to income-producing real estate properties and development sites, while Peterson Investment pools together money from investors to lend as mortgages.
Peterson Holdings admitted that it engaged in unregistered trading from 2015 to 2019, including by raising more than $80 million through 258 trades. The 43 investors involved purchased units in a special purpose limited partnership that held title to a particular project.
Peterson Investment admitted to engaging in unregistered trading from 2013 to 2018, including by distributing interests in 36 syndicated mortgage loans totaling $66.8 million to 53 investors through 399 trades.
Peterson Holdings received compensation for raising capital, while Peterson Investment received an administration fee. However, neither the compensation nor the administration fees were a significant source of revenue.
As part of the settlement agreement, Peterson Holdings must pay $115,000 to the BCSC and Peterson Investment must pay $90,000.
The two companies, which don’t have any history of regulatory misconduct, communicated the trading opportunities only to a select group, including certain directors, officers and employees of those companies, members of their immediate family, and a small number of close friends of the owners and senior management of the Peterson Group. Peterson Holdings made early admissions with respect to its misconduct and fully cooperated with the Commission’s review of these matters. In addition, the Peterson Group registered a new Exempt Market Dealer firm, through which it will trade securities. In light of these and other circumstances, the Executive Director determined that it was not in the public interest to issue orders under section 161 of the Securities Act.
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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