A former Nanaimo investment advisor, banned for life from offering financial services, is being accused by the B.C. Securities Commission of lying to investigators while under oath.
The commission, an independent provincial agency which enforces the B.C. Securities Act, alleges that Kenneth Edward Smith perjured himself in relation to a probe by a separate regulatory body, the Investment Industry Regulatory Organization of Canada, for violating numerous dealer member rules. According to a press release, the securities commission alleges that when speaking to Smith in 2017, he said his company received money from only one investor, but after evidence was presented to the contrary, Smith admitted he tried to conceal information, making a false or misleading statement in the process.
The accusations against Smith by the B.C. Securities Commission have not yet been proven.
A hearing date for Smith is expected to be scheduled in March by the commission and evidence and arguments are usually heard by a three-person panel.
The commission told the News Bulletin it couldn’t comment if its investigators were questioning Smith about the Investment Industry Regulatory Organization of Canada investigation.
In the regulatory organization’s June 2018 decision, Smith was found to have contravened a number of dealer member rules dating back to 2013. These included Smith taking part in an outside business venture, a company that provided chrome and graphic finishing on vehicles, without receiving permission from his dealer member (Queensbury Securities Inc.) and accepting a loan from a client for the business. Other contraventions included accepting $10,000 from a client to invest without consent of his dealer member.
The IIROC ultimately banned Smith for life from offering financial services in Canada, fined him $125,000 and ordered he pay $20,000 in costs.
The commission said the allegations in the current case are against Smith only and not Queensbury Securities Inc.