News Release

Vancouver – Fraudster Michael Lathigee has paid US$350,000 to the B.C. Securities Commission (BCSC) as partial payment for the millions of dollars in financial sanctions it imposed on him in 2014.

The payment is part of a settlement between the BCSC and Lathigee that also requires him to comply with several conditions, including submitting quarterly notarized financial disclosure forms.

A BCSC panel found in 2014 that Lathigee fraudulently raised millions of dollars from investors without telling them about the financial condition of companies he controlled. He also used the money to make loans to related companies, instead of investing the funds in foreclosures of residential properties.

Lathigee, a Vancouver resident who moved to Las Vegas, has not voluntarily paid any of the $36.7 million he owes to the BCSC. So the BCSC filed a lawsuit against him in Nevada, asking the courts there to recognize $21.7 million of the sanction against him as enforceable in Nevada. That effort culminated with a unanimous ruling for the BCSC by the state’s highest court.

Under the terms of the settlement, the BCSC will refrain for three years from collecting any other assets from Lathigee. However, if Lathigee’s annual pre-tax income from 2022 to 2025 exceeds US$250,000, he must pay the BCSC 40 per cent of the amount in excess of US$250,000, less any applicable state and federal taxes. He must notify the BCSC in writing of any change of residence and provide his new address. Lathigee also granted the BCSC a secured interest in any other tangible personal property he owns – or obtains in the future – that could be used to pay his remaining debt to the BCSC.

“It took years of litigation to obtain this first significant sum from Michael Lathigee, and we’ll make sure it goes to his victims,” said Peter Brady, the BCSC’s Executive Director. “We will continue to seek any available assets of his, either under the terms of the agreement or after the three-year pause comes to an end.”

The BCSC placed a lien on Lathigee’s Las Vegas home in May 2019, which he had previously transferred to his spouse. The BCSC also arranged for a constable to seize Lathigee’s personal property, primarily artwork, with an estimated auction value of less than US$80,000. The BCSC, as part of the settlement, has released the lien on the house and returned his personal property to him.

The $21.7 million that was deemed enforceable in Nevada represented the amount of money he and Earle Douglas Pasquill obtained from their misconduct. In addition, the BCSC panel imposed a $15 million administrative penalty and permanently banned him from trading in securities in B.C.

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