A Coquitlam man who promised investors a 25% return and then used their money to gamble has promised to repay them under a settlement with the British Columbia Securities Commission (BCSC).
Shayne William Sharma must also pay $25,000 to the BCSC after paying back the investors in full, and is permanently banned from the capital markets.
Sharma raised about $257,500 from 21 residents of B.C. in the scheme which he ran from March 2014 to January 2015.
According to a BCSC press release, Sharma told the investors he owned stock warrants — the right to buy shares at a certain price in the future — but needed money to exercise those warrants.
He told the investors that he would then sell the shares at a premium and would return the investors’ money to them, plus 25%, in 45 days.
Then In an attempt to delay paying back his investors and to stop them from making a complaint to the BCSC, Sharma gave them a forged letter on BCSC letterhead, purportedly signed by BCSC staff.
By using their money for gambling, Sharma perpetrated a fraud under B.C.’s Securities Act.
Sharma, who voluntarily began to repay investors before the BCSC’s involvement, admitted to perpetrating the misconduct to the BCSC.
So far, he has paid back about $160,000.
In a settlement with the securities commission, Sharma has agreed to several actions, including providing a list of all investors, with contact information and amounts owed, whom he has not yet repaid
Sharma must also repay investors in full by January 2026, with a minimum of $9,650 to be paid in each six-month period from the date of the agreement
To fulfill the settlement agreement, Sharma must also report to BCSC staff details about payments he has made to investors and provide evidence of those payments
He must also pay $25,000 to the BCSC and if Sharma doesn’t fully repay investors or otherwise defaults on his agreement, the BCSC executive director has ordered he will have to pay the BCSC $96,500, representing the amount he received from the misconduct.
Sharma has also been permanently banned from:
• Trading in or purchasing any securities or derivatives, except through a registered dealer
• Relying on exemptions in the act, regulations or a decision
• Becoming or acting as a registrant or promoter
• Advising or otherwise acting in a management or consultative capacity in the securities or derivatives market
• Engaging in promotional activities on others’ behalf in the securities or derivatives market
• Engaging in promotional activities on his own behalf.