National News

Security commission says B.C. man committed fraud

By The Canadian Press

VANCOUVER - The British Columbia Securities Commission has found a Vancouver Island man committed a $65-million fraud on almost 500 clients, many of them senior citizens.

A commission panel found between June 2007 and December 2010 David Michael Michaels illegally advised clients to sell their stocks, bonds and mutual funds to purchase high-risk exempt market securities.

The panel heard Michaels paid $2,000 to conduct weekly infomercials, entitled Creating Wealth with David Michaels, on CFAX 1070 radio in Victoria, drawing about 20,000 listeners a week.

The commission says Michaels β€” who claimed repeatedly on his shows he loved helping seniors make money β€” actually preyed on his clients by frightening them into leaving safe capital markets for far riskier investments.

The panel heard Michaels was paid $5.8 million in fees and commissions for his sales of exempt market securities.

The panel will hear submissions on sanctions at a later time.

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