U.S. authorities freeze assets, charge British Columbians in 'long-running fraudulent scheme'

 

Five years after he was named as a major Canadian player in the "Panama Papers" offshore finance scandal, a former West Vancouver lawyer is now facing prosecution in the United States and has had his financial assets frozen by the U.S. Securities and Exchange Commission.

Fred Sharp, who nicknamed himself "Bond" after the film spy, according to court filings, is one of six British Columbians charged by the regulator with "violating anti-fraud provisions" of the U.S. Securities Act.

Sharp and two of his fellow B.C. defendants are also facing conspiracy and securities fraud charges by the U.S. Justice Department.

"Sharp masterminded ... long-running fraudulent schemes that collectively generated hundreds of millions of dollars from unlawful stock sales" between 2011 and 2018, the SEC said on Aug. 12.

Also facing SEC charges are six of Sharp's alleged "associates": Zhiying Gasarch of Richmond, B.C.; Surrey resident Courtney Kelln; North Vancouver's Mike Veldhuis; Jackson Friesen of Delta; Paul Sexton of Anmore, B.C.; and Avtar Singh Dhillon, a Canadian living in California.

The U.S. stock market regulator alleges the co-accused "frequently collaborated with Sharp to dump huge stock positions while hiding their control positions."  (more...)

U.S. authorities freeze assets, charge British Columbians in 'long-running fraudulent scheme'

Background:

Canadian helped arrange securities fraud with offshore sales, U.S. alleges

Coalition calls to end snow-washing and urges feds for improved transparency in wake of FinCEN Files

 

OTTAWA – A coalition of organizations is urging the federal government to crack down on financial crime after Canadian banks, shell companies, and individuals were identified in a global investigation into suspicious financial activity.

The FinCEN Files investigation by the International Consortium of Investigative Journalists and BuzzFeed News found Western banks helped trillions in dirty or suspicious money flow across borders. Between 2000-2017, suspicious activity reports referenced individuals from more than 170 jurisdictions. Canada ranked 7th among countries where individuals were flagged for suspicious financial activity.

“Canada has a reputation as a safe country with a robust economy, but our weak transparency laws have made us a haven for bad actors and complicit in all sorts of illicit global activity from drug trafficking to terrorist financing,” said Sasha Caldera, beneficial ownership transparency campaign manager with Publish What You Pay Canada, one of the coalition members.

Radio-Canada’s Enquête investigated Canadian shell corporations flagged in the FinCEN files for receiving millions in suspicious transactions. Journalists traced front companies incorporated in New Brunswick and Alberta, with no legitimate business activity or beneficial owner in Canada, to Russia and alleged illicit activities ranging from insurance fraud to illegal fishing.  (more...)

Coalition calls to end snow-washing and urges feds for improved transparency in wake of FinCEN Files

Related:

End Snow-Washing