News Release

Vancouver – The B.C. Securities Commission (BCSC) has permanently banned a Vancouver lawyer from participating in B.C.’s investment market after a U.S. court found him guilty of market manipulation.

In 2018, the U.S. Securities and Exchange Commission (SEC) accused Faiyaz A. Dean of engaging in a “fraudulent scheme to effect illegal, unregistered sales of and manipulate the market for shares of … Biozoom Inc.” The SEC alleged that the scheme generated about $34 million in illicit proceeds from sales of Biozoom shares to retail investors and other investors at artificially inflated prices.

Dean did not participate in the U.S. proceedings, and in November 2019, the court entered a final judgment against him, finding he had violated four provisions of U.S. securities law. The court barred him from participating in any offering of penny stock (any security that has a price of less than US$5 dollars) and ordered him to pay a civil penalty of US$160,000 to the SEC.

The BCSC imposed sanctions on Dean under its authority to reciprocate orders by other securities regulators, self-regulatory organizations, exchanges or courts.

“Dean’s fraudulent market manipulation involved artificially high stock prices which were sold to unsuspecting investors who, consequently, suffered harm when the prices fell,” the BCSC panel said. “Dean claims that his role in the fraudulent scheme was ‘relatively minor.’  He is wrong. He had an essential role in the market manipulation and, because of his actions, investors were harmed.”

Noting that Dean received almost US$120,000 from the scheme, the panel added, “Dean did this while being licensed as a lawyer and sworn to uphold the law. Dean’s actions display contempt for securities regulations. He continues to be a serious risk to investors and British Columbia’s capital markets.”

The BCSC panel ordered Dean to resign any position he holds as a director or officer of an issuer or registrant, and barred him from:

• Trading in or purchasing any securities, derivatives, or registered accounts, with some limited exceptions
• Becoming or acting as a director or officer of any issuer or registrant
• Becoming or acting as a registrant or promoter
• Advising or acting in a management or consultative capacity in the securities or derivatives markets
• Engaging in promotional activities by or on behalf of an issuer, security holder, party to a derivative, or a person that is reasonably expected to benefit from the promotion
• Engaging in promotional activities on his own behalf that would reasonably be expected to benefit him, and
• Relying on any exemptions of the Securities Act, the regulations or a decision.

Dean, a Canadian citizen, is currently licensed to practice in Washington State, and is a non-practicing lawyer in British Columbia.  

About the B.C. Securities Commission (www.bcsc.bc.ca)

The B.C. 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.

Media Contact:
Brian Kladko
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