Gracey <kgracey@bcsc.bc.ca>
Subject: BC Securities Commission News Release: BCSC panel finds Vancouver man abused B.C.'s capital markets
PLAIN TEXT:
https://www.bcsc.bc.ca/News/News_Releases/2018/76_BCSC_panel_finds_Vancouver_man_abused_B_C_%E2%80%99s_capital_markets
--->/
BCSC panel finds Vancouver man abused B.C.'s capital markets
2018/76
October 10, 2018
Vancouver - A British Columbia Securities Commission (BCSC) panel has found<https://www.bcsc.bc.ca/Enforcement/Decisio
--->ns/Matthew_John_Hamilton_and_Braeden_William_Sinclair_Lichti_(aka_Braeden_Sinclair)__Findings_/> a Vancouver man's con
--->duct with respect to creating a publicly trading shell company was abusive to B.C.'s capital markets.
The BCSC panel found that it is in the public interest to make orders against Matthew John Hamilton, a resident of Van
--->couver, for his deception of securities regulators, capital markets gatekeepers, and the public about the true ownersh
--->ip and control of Guru Health Inc., a company that traded on the OTC Bulletin Board (OTCBB) in the United States. The
--->panel also dismissed allegations against his co-respondent, Braeden William Sinclair Lichti (a.k.a. Braeden Sinclair),
---> also a Vancouver resident.
"Hamilton's conduct was so egregious and raises such concern for the investing public and the integrity of our capital
---> markets that it was clearly abusive," the panel said in its findings.
Hamilton concealed his control over Guru Health when he created the company by installing nominee directors and office
--->rs. He went on to impersonate Guru Health's CEO when conducting the company's business affairs, and failed to disclose
---> his involvement with the company when he arranged the filing of its registration statement with a U.S. regulator, and
---> subsequently, the BCSC.
Furthermore, Hamilton worked to create the illusion of independent shareholders in order to obtain a listing on the OT
--->CBB. When applying for the listing, Hamilton did not disclose to the Financial Industry Regulatory Authority, or the s
--->ponsoring firm, that he and Lichti had actually provided the funds and purchased the shareholders' shares.
After obtaining the listing, Hamilton earned US $190,000 when he sold Guru Health without public disclosure. Lichti re
--->ceived US $30,000 in connection with acting as a finder for the sale.
The panel dismissed the BCSC executive director's allegations against Lichti, stating, "{
…}we do not dismiss th
--->e idea that those who aid and abet a principal actor in misconduct may be subject to public interest orders. However,
--->the aiding and abetting must be linked to the misconduct that raises public interest concerns." In this case, the pan
--->el did not find that Lichti was connected to the various acts of deception linked to Guru Health.
The panel directed the parties to make submissions on sanctions according to the schedule set out in the findings.
You may view the findings decision on our website, www.bcsc.bc.ca<http://www.bcsc.bc.ca/>, by typing Matthew John Hami
--->lton, Braeden William Sinclair Lichti or 2018 BCSECCOM 290 in the search box. Information about disciplinary proceedin
--->gs can be found in the Enforcement section<https://www.bcsc.bc.ca/Enforcement/> of the BCSC website.
Please visit the Canadian Securities Administrators' (CSA) Disciplined List<http://www.securities-administrators.ca/di
--->sciplinedpersons.aspx?id=74> for information relating to persons and companies disciplined by provincial securities re
--->gulators, the Investment Industry Regulatory Organization of Canada (IIROC) and the Mutual Fund Dealers Association of
---> Canada (MFDA).
About the British Columbia Securities Commission ( www.bcsc.bc.ca <http://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 pr
--->omote the public interest by fostering:
dot A securities market that is fair and warrants public confidence
dot A dynamic and competitive securities industry that provides investment opportunities and access to capital
- 30 -
Media Contact:
Ken Gracey
604-899-6577
Public inquiries:
604-899-6854 or 1-800-373-6393 (toll free)
inquiries@bcsc.bc.ca<mailto:inquiries@bcsc.bc.ca>
Learn how to protect yourself and become a more informed investor at www.investright.org<http://www.investright.org/>
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<p class="MsoNormal"><a href="https://www.bcsc.bc.ca/News/News_Releases/2018/76_BCSC_panel_finds_Vancouver_man_abused_
--->B_C_%E2%80%99s_capital_markets/">https://www.bcsc.bc.ca/News/News_Releases/2018/76_BCSC_panel_finds_Vancouver_man_abus
--->ed_B_C_%E2%80%99s_capital_markets/</a><o:p></o:p></p>
<h1 style="margin:0in;margin-bottom:.0001pt"><span style="font-size:21.0pt;font-family:"Arial","sans-se
--->rif";color:#052C48;font-weight:normal"><o:p> </o:p></span></h1>
<h1 style="margin:0in;margin-bottom:.0001pt"><span style="font-size:21.0pt;font-family:"Arial","sans-se
--->rif";color:#052C48;font-weight:normal">BCSC panel finds Vancouver man abused B.C.{� �}s capital markets<o:
--->p></o:p></span></h1>
<p><span style="font-family:"Arial","sans-serif";color:black">2018/76 <br>
October 10, 2018<o:p></o:p></span></p>
<p><strong><span style="font-family:"Arial","sans-serif";color:black">Vancouver</span></strong><sp
--->an style="font-family:"Arial","sans-serif";color:black"> - A British Columbia Securities Comm
--->ission (BCSC) panel <a href="https://www.bcsc.bc.ca/Enforcement/Decisions/Matthew_John_Hamilton_and_Braeden_Willi
--->am_Sinclair_Lichti_(aka_Braeden_Sinclair)__Findings_/" target="_blank" title="Matthew John Hamilton and Braeden Willia
--->m Sinclair Lichti (aka Braeden Sinclair) [Findings]"><span style="color:#7E3141">has
found</span></a> a Vancouver man's conduct with respect to creating a publicly trading shell company was abusive
---> to B.C.'s capital markets.<o:p></o:p></span></p>
<p><span style="font-family:"Arial","sans-serif";color:black">The BCSC panel found that it is in t
--->he public interest to make orders against Matthew John Hamilton, a resident of Vancouver, for his deception of securit
--->ies regulators, capital markets gatekeepers,
and the public about the true ownership and control of Guru Health Inc., a company that traded on the OTC Bulletin Bo
--->ard (OTCBB) in the United States. The panel also dismissed allegations against his co-respondent, Braeden William Sinc
--->lair Lichti (a.k.a. Braeden
Sinclair), also a Vancouver resident.<o:p></o:p></span></p>
<p><span style="font-family:"Arial","sans-serif";color:black">"Hamilton's conduct was so egre
--->gious and raises such concern for the investing public and the integrity of our capital markets that it was clearly ab
--->usive," the panel said in its findings.<o:p></o:p></span></p>
<p><span style="font-family:"Arial","sans-serif";color:black">Hamilton concealed his control over
--->Guru Health when he created the company by installing nominee directors and officers. He went on to impersonate Guru H
--->ealth's CEO when conducting the company's
business affairs, and failed to disclose his involvement with the company when he arranged the filing of its registra
--->tion statement with a U.S. regulator, and subsequently, the BCSC.<o:p></o:p></span></p>
<p><span style="font-family:"Arial","sans-serif";color:black">Furthermore, Hamilton worked to crea
--->te the illusion of independent shareholders in order to obtain a listing on the OTCBB. When applying for the listing,
--->Hamilton did not disclose to the Financial
Industry Regulatory Authority, or the sponsoring firm, that he and Lichti had actually provided the funds and purchas
--->ed the shareholders' shares.<o:p></o:p></span></p>
<p><span style="font-family:"Arial","sans-serif";color:black">After obtaining the listing, Hamilto
--->n earned US $190,000 when he sold Guru Health without public disclosure. Lichti received US $30,000 in connection with
---> acting as a finder for the sale.<o:p></o:p></span></p>
<p><span style="font-family:"Arial","sans-serif";color:black">The panel dismissed the BCSC executi
--->ve director's allegations against Lichti, stating, "{� �}we do not dismiss the idea that those who aid and
---> abet a principal actor in misconduct may be subject to public
interest orders. However, the aiding and abetting must be linked to the misconduct that raises public interest concer
--->ns." In this case, the panel did not find that Lichti was connected to the various acts of deception linked
---> to Guru Health.<o:p></o:p></span></p>
<p><span style="font-family:"Arial","sans-serif";color:black">The panel directed the parties to ma
--->ke submissions on sanctions according to the schedule set out in the findings.<o:p></o:p></span></p>
<p><span style="font-family:"Arial","sans-serif";color:black">You may view the findings decision o
--->n our website, <a href="http://www.bcsc.bc.ca/"><span style="color:#7E3141">www.bcsc.bc.ca</span></a>, by typing
--->Matthew John Hamilton, Braeden William Sinclair
Lichti or 2018 BCSECCOM 290 in the search box. Information about disciplinary proceedings can be found in the <a
---> href="https://www.bcsc.bc.ca/Enforcement/"><span style="color:#7E3141">Enforcement section</span></a> of the BCS
--->C website.<o:p></o:p></span></p>
<p><span style="font-family:"Arial","sans-serif";color:black">Please visit the Canadian Securities
---> Administrators' (CSA) <a href="http://www.securities-administrators.ca/disciplinedpersons.aspx?id=74"><span styl
--->e="color:#7E3141">Disciplined List</span></a> for
information relating to persons and companies disciplined by provincial securities regulators, the Investment Industr
--->y Regulatory Organization of Canada (IIROC) and the Mutual Fund Dealers Association of Canada (MFDA).<o:p></o:p></span
--->></p>
<p><strong><u><span style="font-family:"Arial","sans-serif";color:black">About the British Columbi
--->a Securities Commission (</span></u></strong><strong><span style="font-family:"Arial","sans-serif"
--->;color:black"> </span></strong><span style="font-family:"Arial","sans-serif";color:black"><a
--->href="http://www.bcsc.bc.ca/"><strong><span style="font-family:"Arial","sans-serif";color:#7E3141;
--->text-decoration:none">www.bcsc.bc.ca</span></strong><span style="color:#7E3141"> </span></a></span><strong><u><sp
--->an style="font-family:"Arial","sans-serif";color:black">)</span></u></strong><span style="font-fam
--->ily:"Arial","sans-serif";color:black"><o:p></o:p></span></p>
<p><span style="font-family:"Arial","sans-serif";color:black">The British Columbia Securities Comm
--->ission is the independent provincial government agency responsible for regulating capital markets in British Columbia
--->through the administration of the <em><span style="font-family:"Arial","sans-serif"">Securiti
--->es
Act</span></em>. Our mission is to protect and promote the public interest by fostering:<o:p></o:p></span></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;margin-right:11.25pt;mso-margin-bottom-alt:auto;margin-left:11.25p
--->t;text-indent:-.25in;mso-list:l0 level1 lfo1">
<![if !supportLists]><span style="font-size:10.0pt;font-family:Symbol;color:black"><span style="mso-list:Ignore">{� &#
--->65533;}<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]><span style="font-family:"Arial","sans-serif";color:black">A securi
--->ties market that is fair and warrants public confidence<o:p></o:p></span></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;margin-right:11.25pt;mso-margin-bottom-alt:auto;margin-left:11.25p
--->t;text-indent:-.25in;mso-list:l0 level1 lfo1">
<![if !supportLists]><span style="font-size:10.0pt;font-family:Symbol;color:black"><span style="mso-list:Ignore">{� &#
--->65533;}<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]><span style="font-family:"Arial","sans-serif";color:black">A dynami
--->c and competitive securities industry that provides investment opportunities and access to capital<o:p></o:p></span></
--->p>
<p align="center" style="text-align:center"><span style="font-family:"Arial","sans-serif";color:bl
--->ack">- 30 -<o:p></o:p></span></p>
<p><span style="font-family:"Arial","sans-serif";color:black">Media Contact:<br>
Ken Gracey<br>
604-899-6577<o:p></o:p></span></p>
<p><span style="font-family:"Arial","sans-serif";color:black">Public inquiries:<br>
604-899-6854 or 1-800-373-6393 (toll free)<br>
<a href="mailto:inquiries@bcsc.bc.ca"><span style="color:#7E3141">inquiries@bcsc.bc.ca</span></a><o:p></o:p></span></p
--->>
<p><span style="font-family:"Arial","sans-serif";color:black">Learn how to protect yourself and be
--->come a more informed investor at <a href="http://www.investright.org/" target="_blank" title="www.investright.org
--->"><span style="color:#7E3141">www.investright.org</span></a><o:p></o:p></span></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
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If this message is not meant for you, do not use it - please let us know, and then delete it. We try hard to keep our
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--->vent their spread.<br>
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