Fraud victims to benefit from proceeds of the sale
VANCOUVER, July 27, 2018 /CNW/ - The British Columbia Securities Commission (BCSC) has obtained a court order from the Third Circuit Court of the State of Hawaii for the sale of property belonging to David Michael Michaels. The BCSC will receive the proceeds of the sale, which it can then return to victims of Michaels' fraud.
In August 2014, a BCSC panel found that Michaels committed fraud against 484 investors, many of them seniors. In October 2014, the panel imposed sanctions against Michaels totaling $23.3 million.
In 2015, as part of its efforts to collect against Michaels, the BCSC launched a lawsuit against property in Hawaii and a separate lawsuit in B.C. in relation to a property located in Mill Bay. Michaels is a co-owner of the Hawaii property, but does not own the Mill Bay property.
On June 12, 2018, the Commission entered into an agreement with Michaels that will result in the BCSC recovering funds for the benefit of investors. Under the agreement, the Hawaii property will be sold and the BCSC will receive the proceeds. The BCSC will also receive a cash payment of $50,000 from Michaels. The BCSC will then distribute both amounts to investors.
The agreement does not affect the BCSC's ability to continue to collect against Michaels' outstanding sanctions.
"This is a great outcome for victims of Mr. Michaels' misconduct," says Doug Muir, Director of Enforcement at the BCSC. "It avoids the further delay and uncertainty of lawsuits, which means we will have money to return to victims sooner. The BCSC will continue our efforts to collect our sanctions against Mr. Michaels, and this agreement is a good step as part of that process."
The BCSC will post a notice on its website when the money has been received, along with instructions on how investors can make claims.
About the British Columbia Securities Commission (www.bcsc.bc.ca)
The British Columbia Securities Commission is the independent provincial government agency responsible for regulating capital markets in British Columbia through the administration of the Securities Act. Our mission is to protect and promote the public interest by fostering:
- A securities market that is fair and warrants public confidence
- A dynamic and competitive securities industry that provides investment opportunities and access to capital
Learn how to protect yourself and become a more informed investor at www.investright.org
SOURCE British Columbia Securities Commission
For further information: Media Contact: Andrew Poon, 604-899-6880; Public inquiries: 604-899-6854 or 1-800-373-6393 (toll free), [email protected]