B.C. investor returns $55K, banned from markets for misconduct

The B.C. Securities Commission logo in an undated file photo.

A British Columbia man who told investors he could double their money in three years or less has been permanently banned from the province’s investment market after the provincial securities regulator found he spent investor funds on personal expenses.

Jeremy Alexei Benne reached a settlement agreement last month with the B.C. Securities Commission after raising $255,000 from 23 investors between December 2020 and June 2023.

Benne told the investors he could provide a 100 per cent rate of return on their investments in one to three years by trading securities and derivatives on their behalf, according to the agreement.

Instead, Benne used $75,000 of the funds for personal purposes, and “lost most of the remaining investor funds,” the regulator found.

“By doing so, Benne violated the provision in B.C.‘s Securities Act against making false statements to investors through promotional activities that a reasonable investor would consider important in determining whether to purchase securities,” the BCSC wrote in a Jan. 8 statement.

As part of the settlement, Benne agreed to return $55,000 obtained through the misconduct to the regulator to repay the victims, the statement said.

In addition to the financial penalty, Benne is permanently prohibited from participating in B.C.‘s investment market, though he is allowed to continue trading his own funds through a registered agent, according to the regular.

“Benne was given credit for fully co-operating with the investigation, including providing information to investigators and admitting to the wrongdoing,” the BCSC said.