|Chinese print "Smash the Gang of Four"|
We know that several of the victims have filed complaints with existing Ontario regulators, but no action has reportedly been taken to date, and these agencies have a long history of not only failing to protect the investing public, but of keeping those few fines and civil penalties that they do impose confidential, which allows the guilty parties to move to other firms, and continue their course of illegal conduct, attacking additional victims, who are unaware of their dark past.
For example, Lyle Stein, formerly the Managing Director of Leon Frazer & Associates, Inc., and previously the chief compliance officer there, was fined, by the Ontario Securities Commission (OSC), in the amount of CAD$500,000. The circumstances of the case were never made public, and Stein is now comfortably situated in another Ontario securities/wealth management firm. It is extremely doubtful that his present clients are aware of this huge fine, as we believe that present Leon Frazer & Associates clients, who dealt with Stein, are also in the dark about his violations of the law, sins & transgressions, occurring at that firm.
Three of the Cayman Gang of Four, Derek Buntain, Ryan Bateman, and William Tynkaluk, are Canadians, and reportedly are engaged in new fraudulent schemes, using some of the millions that they stole from their victims. Whether Ontario will act, in 2017, to charge Gang members, together with Leon Frazer & Associates, Inc., and Northland Wealth Management, Inc., the two firms that allegedly facilitated the fraud, and theft of client assets, is a question that deserves an answer.
Clearly, the Cayman Gang of Four, together with senior management at Leon Frazer & Associates, and Northland Wealth Management, Inc., deserve to be banned, for life, from the securities industry, for their egregious criminal conduct. Does Canada now finally have a regulator with the strength to do just that ? We cannot say, but we will be watching.