VANCOUVER, Feb. 7 /CNW/ - A British Columbia Securities Commission panel
has fined a B.C. man $6 million and permanently banned him from the
province's capital markets, after finding that he perpetrated a $1.3
million fraud on six investors.
The panel also found that Luc Castiglioni, a B.C. resident, gave false
and misleading information to the commission, and that he falsely
represented a company's registration status under B.C. securities laws.
Castiglioni raised a total $8.2 million from more than 60 investors
using two companies, CPLC Limited Partnership and CPLC Management Group
Ltd. The panel made findings based on $1.3 million commission staff
traced during the investigation, and found that Castiglioni used this
money to enrich himself and his family members, and for other purposes.
Castiglioni alone controlled the flow of funds through the two
companies. He prepared false account statements for investors, and
misrepresented the structure and operation of the companies to them. He
also forged bank statements in order to frustrate commission staff's
attempt to discover the truth.
Furthermore, Castiglioni prepared, or caused to be prepared, documents
for investors that said CPLC Management Group was a registered
portfolio manager and that he was a registered adviser.
"This was a lie, and a serious one," the panel said. "Registration is
one of the key investor protection mechanisms in the Act, and a
representation of registration leads investors to a degree of trust and
reliance they otherwise would not have."
The panel also found that CPLC Management Group made untrue
representations about its registration status, and that CPLC Limited
Partnership engaged in conduct contrary to the public interest by
distributing securities that were integral to the fraud.
Due to the aggravating factors of his misconduct, the panel fined
Castiglioni $6 million - three times the amount he defrauded investors,
plus an additional $2 million. It also ordered disgorgement of nearly
In addition to the administrative penalty, the panel ordered Castiglioni
permanently banned from trading securities or exchange contracts and
from being a manager or consultant in connection to the securities
market. Castiglioni is also prohibited from being a director or officer
of any issuer, registrant or investment fund manager, being a
registrant, investment fund manager or promoter, and from engaging in
investor relations activities.
The panel permanently cease traded the securities of CPLC Limited
Partnership and CPLC Management Group. Both companies are also
permanently banned from purchasing securities or exchange contracts,
from acting as a registrant, investment fund manager or promoter, and
from engaging in investor relations activities.
The B.C. Securities Commission is the independent provincial government
agency responsible for regulating trading in securities within the
You may view the decision on our website www.bcsc.bc.ca by typing in the search box, Luc Castiglioni, CPLC Limited Partnership,
CPLC Management Group Ltd. or 2011 BCSECCOM 62. If you have questions,
contact Ken Gracey, media relations, 604-899-6577.
Learn how to protect yourself and become a more informed investor at www.investright.org
SOURCE British Columbia Securities Commission
For further information:
Contact: Ken Gracey