Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Man bilked investors of millions, BCSC rules Add to ...

Former B.C. resident Brian David Anderson defrauded 352 investors of $14.7-million through two bogus investment schemes, the British Columbia Securities Commission ruled this week.

Mr. Anderson, who lived in White Rock while conducting his frauds, was accused of perpetrating a fraud, making misrepresentations and distributing securities illegally while promoting investment schemes under the names Frontier Assets and the Alpha Program.

The BCSC has not imposed penalties yet, saying it will review submissions from the parties. Mr. Anderson did not attend the BCSC hearing into his case earlier this year and was not represented by a lawyer.

In March, he was arrested by Spanish police at a luxury hotel in Madrid on an outstanding U.S. warrant. Prosecutors in New York have launched a criminal complaint against Mr. Anderson, alleging he reaped millions in investment schemes in New York in recent years.

When he was arrested last month, news reports also linked Mr. Anderson to terrorist financing because a partner in one of his investment schemes, Abdul Abin Ali Alishtari -- also known as Michael Mixon -- had been arrested in New York and accused of assisting in financing a terrorist training camp.

However, the complaint filed against Mr. Anderson by prosecutors in New York does not allege he was involved in the terrorist financing.

In the B.C. case, the commission said Mr. Anderson promised investors he would invest their funds in various businesses, commodities and financial instruments. Instead, he used the money from new investors to pay interest to previous investors.

The commission said it is unlikely the money he raised will be repaid. The BCSC said Mr. Anderson's victims ranged across Canada, the United States, Britain, Japan, the Bahamas, Panama and Brazil.

In 2003, the Ontario Securities Commission accused Mr. Anderson of acting contrary to the public interest by promoting an investment scheme involving a purported new commodity exchange called Flat Electronic Data Interchange -- the same investment scheme used in the Alpha Program identified by the BCSC.

In the Ontario case, Mr. Anderson reached a settlement with the commission in 2004, agreeing to halt sales and accept restrictions on his ability to trade securities in Ontario.

Follow on Twitter: @JMcFarlandGlobe

 

In the know

Most popular videos »

Highlights

More from The Globe and Mail

Most popular