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by Mike Caswell

The U.S. Securities and Exchange Commission has asked a judge to impose $2.07-million in sanctions on Shredderz International Corp., a private entity controlled by Canadian Raymond Dove. (All figures are in U.S. dollars.) The SEC claims that Shredderz was part of a Colombian boiler room run by Mr. Dove and former Vancouverite Frank Biller. The operation helped hidden shareholders of several companies unload millions of shares, generating $58.3-million in gains, the SEC says.

The proposed penalty for Shredderz is contained in a motion that the SEC filed in federal court in New York on Thursday, Nov. 17. The SEC is seeking disgorgement of $1.6-million in gains, plus interest. The amount represents cash that Shredderz received from offshore trading platforms and others who were working on behalf of hidden shareholders that used the boiler room, the SEC says.

The SEC seems likely to win a judgment against Shredderz, but the possibility of collecting the money may be small. Shredderz has so far ignored the case, as has its alleged owner, Mr. Dove. With the deadline for Shredderz to file a response having long passed (on April 15, 2022), the judgment the SEC is seeking would be one handed down by default.

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