News Release

Vancouver – A Mission resident has paid $30,000 to the BC Securities Commission (BCSC) for making false or misleading statements, obstructing justice and unregistered trading in connection with his company.

Colin Frederick Eggen was the sole director of Novum AI, a B.C.-based company that claimed it used algorithmic trading to generate yearly returns of up to 150 per cent by investing in foreign currency exchange, gold and cryptocurrency markets. 

Between 2022 and 2023, Novum AI traded in securities by entering into investment contracts with twelve people who invested about $480,000 total.

All of the investors lost all of their money.

Novum AI triggered the requirement to register by engaging in the business of trading in securities and holding itself out as engaging in the business of trading in securities, but it was not registered under B.C.’s Securities Act, nor did it qualify for an exemption from the registration requirement. By engaging in the business of trading in securities without being registered and without an exemption, the company violated the Act.

During the same period, Novum AI’s website made the following claims:

• Its technology was developed by more than 60 scientists, researchers and financial analysts with a proven track record of growing wealth
• Its fund size was $50 million, and
• Its returns were 60-150 per cent per year.

These were all false or misleading statements. The technology was not developed by more than 60 scientists, researchers and financial analysts with a proven track record of growing wealth. Its fund size was approximately $500,000, not $50 million. And its fund never generated 60-150 per cent returns.

Eggen admitted that he authorized, permitted or acquiesced in Novum AI’s misconduct and therefore also violated the Act in the same ways.

Eggen obstructed justice during the BCSC’s investigation into Novum AI. After he was ordered to produce all communications with investors related to Novum AI, Eggen claimed he had recently replaced his cell phone and no longer had copies of the text messages that he said were his primary means of communicating with investors. However, under oath, Eggen later admitted that he deleted the text messages from his phone after receiving the order.

In addition to the financial payment, Eggen is banned for 25 years from the investment market, including from being a registrant, engaging in promotional activities, and holding any management role in the investment market or trading securities, except Eggen may do so in his own account through a registered dealer or registrant. Eggen is also prohibited from being a director or officer of any issuer, except of his own holding company, so long as he is the only shareholder. Novum AI is permanently banned from participating in the capital markets.

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