Victoria resident scheduled to face Canada’s largest security regulator for fraud

Victoria resident scheduled to face Canada’s largest security regulator for fraud

Larry Keith Davis finds himself in the crosshairs of the Toronto Stock Exchange regulators

A Victoria resident barred from trading securities in British Columbia will appear before regulators in Ontario later this month.

Larry Keith Davis, who used money from an investor to pay personal bills, finds himself barred from trading securities after the British Columbia Securities Commission (BCSC) had ruled against him earlier this year.

The case against Davis, whom the BCSC also fined $15,000, also drew the attention of the Ontario Securities Commission (OSC) in early 2017. The OSC is Canada’s largest securities regulator in Canada, whose jurisdiction includes the Toronto Stock Exchange.

RELATED: Victoria resident barred from trading securities for fraud

RELATED: Former Olympic rower Harold Backer pleads guilty to fraud

While Ontarian regulators held back their case against Davis to let proceedings unfold in British Columbia, the case is now back before the OSC with a hearing date scheduled for Dec. 12. The OSC is seeking what it calls an “inter-jurisdictional enforcement order” against Davis.

The BCSC ruling against Davis stems from events that date to back to June 2011, when he sold 40,000 shares of a company to the investor for $4,000. In April 2012, he sold another 30,000 shares for $3,000. An investigation though revealed that Davis did not own any shares in the company at the time of either investment or at any subsequent time.

“When the investor began asking for her money back in April 2013, Davis repeatedly refused her requests, claiming that her investments were in shares tied to the stock market,” the commission said in a release.

RELATED: Missing Olympian turns himself in to Victoria Police

RELATED: Lawsuit seeks restitution from former Olympic Rower

While the investor never received any shares from Davis, she eventually succeeded received her money through small claim courts — at a considerable cost though.

“While the amount of the fraud in this case and Davis’ enrichment were not substantial, the harm suffered by the investor was significant,” reads the ruling. “She was deprived of her funds for several years and eventually forced to seek recourse to the courts for their recovery. She was also negatively impacted emotionally and testified at the liability hearing that she had not invested since.”

BCSC in June 2016 found Davis liable for fraud in the amount of $7,000 contrary to provincial regulations. An appeal by Davis against his life-time ban and penalty for $15,000 failed, leading to the commission’s final ruling.

Its conditions prohibit Davis from any professional dealing in securities, with the proviso that Davis may trade or purchase securities for his own account.

Davis, according to the ruling, attempted but did not complete the educational requirements for working with securities, because he began working in 1987 in a small firm. When authorities interviewed Davis in December 2013 as part of their investigation, Davis told them that he ceased to be active in the industry about one and a half to two years before.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Victoria Police Department vehicles outside the headquarters building. (Black Press Media file photo)
Victoria police investigating sudden death in Beacon Hill Park

Police, paramedics responded to a report of an unresponsive person early Wednesday

Victoria’s Swartz Bay terminal. (Black Press Media file photo)
BC Ferries offers cheaper, prepaid fare options

Ferry service preparing for busy terminals when travel restrictions are lifted

Dozens of reports of sexualized violence against a former employee of downtown Victoria restaurant Chuck’s Burger Bar were posted online in January. A police investigation is ongoing. (Nina Grossman/News Staff)
Chuck’s Burger Bar closes its doors after sexual assault allegations

Victoria police investigating reports of sexual misconduct, assault by former restaurant employee

The application proposing to rezone Western Speedway was passed by Langford’s planning, zoning and affordable housing committee Feb 8. A petition has since been started by residents of Trudie Terrace, hoping to stop the proposed residential portion of the development plan. (CBRE Victoria)
Petition opposing Western Speedway development proposal gains steam

Save Thetis Heights Neighborhood petition aims to stop extension of Trudie Terrace

This dead fir tree is one of many in Mount Douglas Park. Nine dead trees will be removed from the Douglas Creek site starting March 8 to make way for the construction of a new pedestrian bridge. (Photo courtesy Jason Clarke)
Nine dead, hazardous trees to be removed from Saanich park ahead of bridge construction

Felling begins March 8, minor trail interruptions expected in Mount Douglas Park

COVID-19 vaccines were available at a site on East Pender in Vancouver’s Downtown Eastside Feb. 25. (Twitter/Sarahblyth17)
Vancouver’s Downtown Eastside residents offered $5 after getting COVID-19 vaccine

It’s an effort to ‘incentivize people to engage,’ says B.C. Health Minister Adrian Dix

(Black Press Media files)
B.C. teacher transferred then suspended after students report feeling ‘scared, nervous’

Authorities found that teacher did not create inviting, respectful environment for students

FILE - Dolly Parton arrives at the 61st annual Grammy Awards on Feb. 10, 2019, in Los Angeles. The Grammy-winning singer, actor and humanitarian posted a video on Tuesday, March 2, 2021, of her singing just before getting her COVID-19 vaccine shot. Parton donated $1 million to Vanderbilt University Medical Center in Nashville, Tennessee for coronavirus research. (Photo by Jordan Strauss/Invision/AP, File)
‘Vaccine, vaccine’: Dolly sings ‘Jolene’ rewrite before shot

The Grammy-winning legend turned 75 this year

Deputy Prime Minister and Minister of Finance Chrystia Freeland speaks about the Fiscal update during a news conference in Ottawa, Monday November 30, 2020. THE CANADIAN PRESS/Adrian Wyld
COVID-19: Wage and rent subsidies, lockdown support to be extended until June

Chrystia Freeland says now is not time to lower levels of support

Older rental apartments are prime candidates for renovations, and could result in lost affordable housing stock. (Zoë Ducklow photo)
B.C.’s renoviction overhaul a good start, but won’t preserve affordable stock, lawyer says

And still no protection for people who can’t pay rent due to COVID-19

(Photo by Marissa Baecker/Shoot the Breeze)
B.C. WHL teams to hit the ice with Kelowna, Kamloops hub cities

Kelowna, Kamloops centres chosen to host B.C. WHL teams for 24-game regular season

The victim of the homicide on Cowichan Lake Road early Monday morning was 17 years old, and was stabbed in the incident. (Kevin Rothbauer/Citizen)
Duncan homicide victim was 17 years old

RCMP report that teenager was stabbed

Most Read