A Delta, B. C. resident, Jackson T. Friesen, who was recently found liable by a U. S. jury for his role in a massive stock fraud scheme, is now opposing a move by the B. C. Securities Commission to ban him from Canadian public markets. Friesen has been ordered to repay investors US$11.8 million and pay a US$1.56 million civil penalty to the U. S. Securities and Exchange Commission.
The B. C. Securities Commission seeks to mirror a lifetime ban on stock market activity imposed on Friesen by a U. S. federal judge in October 2024. This ban stems from his civil liability in an offshore scheme that operated between 2010 and 2019, which American officials allege was orchestrated by Vancouver-based "mastermind" Fred Sharp.
Friesen's legal team is arguing that the commission's application to ban him should be put on hold until the U. S. Supreme Court decides whether it will hear his appeal of the U. S. conviction. However, a B. C. Securities Commission tribunal panel has refused Friesen a stay of proceedings, with a hearing scheduled for December 23. Friesen's lawyers contend that the commission's assertion of him posing a significant ongoing risk to investors is unsubstantiated.
The broader context involves a series of market bans and penalties issued by Canadian securities regulators against individuals involved in fraudulent schemes, highlighting efforts to protect Canadian capital markets from misconduct. Notably, Fred Sharp, alleged mastermind of the offshore scheme, faces significant penalties and has had his appeals denied by Canada's Supreme Court.
