David Michaels Ordered to Repay Victims, banned from markets
by Carla Wilson, Victoria Times Colonist
November 5, 2014 01:35 PM
David Michael Michaels of Mill Bay has been ordered to pay more than $23 million — including a fine of $17.5 million — and banned for life from taking part in B.C.’s capital markets for defrauding 484 investors.A B.C. Securities Commission panel set the amount and ordered the permanent ban for fraud, misrepresentation and breach of regulatory requirements. The monetary penalties and ban were determined following an August ruling that Michaels defrauded investors.
The panel ruled in August that “between June 2007 and December 2010, Michaels, a former mutual fund salesperson, illegally and fraudulently advised 484 clients to purchase over $65 million of exempt market securities (exempt market securities are securities sold under exemptions from prospectus requirements),” a Commission press release.
“The panel found that at least $40 million of the $65 million his clients invested is lost, and most of the rest remains at risk. Michaels was paid $5.8 million in fees and commissions for these activities.”
The panel called Michaels’ business activities “highly predatory,” and said he instilled trust in his clients and then betrayed that trust.
Most of his victims “have little or no opportunity to earn income from work or otherwise financially recover lost amounts,” the release said.
Michaels has been ordered to pay the commission $5.8 million in commissions he obtained as a result of his misconduct, as well as a fine of $17.5 million, it said.
READ THE REST OF THE STORY HERE AT THE TIMES-COLONIST WEBSITE.
MICHAELS PAID FOR A WEEKLY INFOMERCIAL ON C-FAX 1070 RADIO THAT GAVE HIM ACCESS TO THE PEOPLE HE VICTIMIZED
David Baines of the Vancouver Sun says this scam should never have happened, that while he reported what Michaels was doing, authoriities were slow to respond. Read his story HERE.
– See more: HERE
It makes one wonder if CFAX should hold some responsibility or, at least check these people out. After all isn’t it the responsibility of the radio station to serve its audience, which means protecting them from the likes of this guy. CKNW is running some national spots of money schemes which also trouble me.
So this scumbag won’t see any jail time? Banned from the markets and ordered to repay money he doesn’t have or has hidden away somewhere? Such a harsh punishment for this pos who preyed on the elderly and vulnerable * roll eyes here*. Unbelievable!
Well, on that note, would the owners of CFAX broadcasting be prepared to return at LEAST SOME of their massive ad revenues generated by this show back to the victims defrauded by the “scumbag.”
A ha, I didn’t think so !
As long as there is money to be made, who cares about the unwitting public, right.
Who is the real scumbag, now, BLT !
Just saying I realize this story plays into your “all media is evil and complicit narrative” but in my opinion the much bigger scumbag without a doubt is Michaels. Michaels was the guy who went into these old people’s homes with that smarmy cheesy grin and sweet talked them out of their life savings. He’s the one who made them sign on the dotted line, he’s the schister who came up with the entire scheme.
You do have a point however, should CFAX take some responsibility for giving this guy a platform to sell his snake oil? Yes, they should of known what was going over their airwaves. Should they take some of the “millions” they made from this guy and hand it over to the victims? Maybe they should. At the very least they should start running public service announcements on a regular basis warning of all the various different scams out there.
Just saying I realize this story plays into your “all media is evil and complicit narrative” but in my opinion the much bigger scumbag without a doubt is Michaels. Michaels was the guy who went into these old people’s homes with that smarmy cheesy grin and sweet talked them out of their life savings. He’s the one who made them sign on the dotted line, he’s the schister who came up with the entire scheme
You do have a point however, should CFAX take some responsibility for giving this guy a platform to sell his snake oil? Yes, they should of known what was going over their airwaves. Should they take some of the “millions” they made from this guy and hand it over to the victims? Maybe they should. At the very least they should start running public service announcements on a regular basis warning of all the various different scams out there.