BC man accused of fraud; retirees out a total of $65 million
Posted June 6, 2013 12:41 pm.
This article is more than 5 years old.
VANCOUVER (NEWS1130) – A BC man is accused of running an investment fraud that cost people tens of millions of dollars.
Securities regulators say David Michael Michaels advised 484 people to buy private placement securities that were exempt from the usual investment rules.
The BCSC believes Michaels made $5.8 million off of this.
The BC Securities Commission says Michaels targeted retirees on Vancouver Island, ultimately getting them to invest more than $65 million over a 3.5-year period until late 2010. It adds virtually all the investments are now worthless, and many of his clients are destitute and burdened with home equity loans.
According to the regulator, Michaels lied about why he gave up his registration to sell stocks, bonds, and mutual funds in 2006.
It says he told clients and a radio infomercial audience in Victoria that he saw the stock crash coming, but in fact was dodging an investigation by the Investment Dealers Association into off-book transactions.
