Man penalized for falsely acting as securities trader

Fred Louis Sebastian has been ordered to pay tens of thousands of dollars in restitution and penalties after he falsely represented himself as a securities trader.
 
The decision from the Financial and Consumer Affairs Authority (FCAA) of Saskatchewan lays out how Sebastian convinced an elderly woman she could double or even triple her money if she allowed him to help her invest it. He also told her to keep it a secret from her family so she could surprise them later.
 
During the summer of 2012, five cheques worth $47,000 written by the woman were deposited into Sebastian’s personal bank account.
 
When confronted by the woman’s grown children later on, Sebastian produced promissory notes totalling $50,000 with a promise to repay the funds by the end of the year. Sebastian was not a registered dealer or advisor in Saskatchewan during this time.
 
In FCAA’s decision dated July 23, 2015, Sebastian was found to have contravened Saskatchewan securities laws by trading and advising in securities while not registered to do so. He was also found guilty for making a prohibited representation with the intention of effecting a trade in securities, and to have knowingly attempted to defraud a person.
 
Sebastian will have to pay everything back, plus a $75,000 penalty and costs. He’s also banned from the securities industry in Saskatchewan.
 
In the panel’s decision, they noted Sebastian “acted without conscience, not appearing to care that his actions would cause significant economic loss and emotional distress.”

BKnight@rawlco.com
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