News Release
B.C. resident and company must pay $100,000 to BCSC and be subject a 4-year ban for unregistered activity
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Date:
2025-05-21 -
Number:
2025/028
Vancouver – A B.C. resident and his company must pay a combined $100,000 to the BC Securities Commission (BCSC) for soliciting and referring investors to purchase shares of companies without being registered.
A BCSC panel ordered Michael Duane Onstad and LOC Consultants Inc., a company that he controlled, to pay $50,000 each in administrative penalties and banned both of them from the investment market for four years.
Onstad and LOC traded in securities without being registered by soliciting and referring 33 investors, who bought a total of $7.6 million worth of shares through two registered dealer firms. Through these referrals, Onstad and LOC earned $240,000 in fees from the firms between 2018 and 2021.
Neither Onstad nor LOC have ever been registered in any capacity under B.C.’s Securities Act. LOC qualified for an exemption from the requirement to be registered, but failed to file the necessary documentation.
In imposing sanctions against Onstad and his company, the panel noted there was no harm to any investors and no evidence that they lost money.
The panel declined to impose a disgorgement payment– an order representing the amount of money obtained – against LOC, stating that it was not in the public interest and would be “disproportionate and punitive” in this case.
Neither Onstad nor LOC participated in the proceedings.
About the BC Securities Commission (bcsc.bc.ca)
The BC Securities Commission, an independent provincial government agency, strives to make the investment market benefit the public. We set rules, monitor compliance by industry, take action against misconduct, and provide guidance to investors and industry. As guardians of B.C.’s investment market, we’re committed to maintaining a market that is honest, fair, competitive and dynamic, enabling British Columbians to thrive.
Media Contact:
Elise Palmer
604-899-6830
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