Canada’s high court won’t hear appeal from B.C. man facing US$29 million stock fraud penalties
Article content
The Supreme Court of Canada will not hear the appeal of a West Vancouver businessman who faces a US$29 million penalty in B.C. for allegedly masterminding a $1-billion international pump-and-dump stock fraud.
Article content
The high court issued its decision this week, and as usual, provided no reason for not hearing the appeal.
Article content
Article content
Frederick Langford Sharp, in his 70s, owes U.S. Securities Commission penalties that were determined to be enforceable in British Columbia in a B.C. Supreme Court judgment in 2024.
Article content
Story continues below
Article content
In 2022, a U.S. Federal Court issued a US$53-million judgment against Sharp in the stock fraud after he did not respond to the SEC allegations.
Article content
FP West: Energy Insider
Article content
The U.S. regulator alleged Sharp was the mastermind in a massive pump-and-dump stock fraud that used sophisticated platforms to hide control of millions of shares of several penny stock companies.
Article content
In a pump-and-dump scheme, low-priced stocks, often called penny stocks, are amassed secretly by owners and sold at inflated prices through false promotions. The stocks are then dumped at a profit at the expense of unsuspecting investors.
Article content
Sharp’s penalties of US$53 million include a repayment of US$28.9 million in profits he netted in the alleged scheme between 2011 and 2019 plus interest — and a fine of nearly US$24 million.
Article content
The SEC sued in B.C. for the profits that Sharp netted.
Article content
In 2024, a B.C. Supreme Court ordered a freezing order of assets of Sharp and others involved in the stock fraud.
Article content
Sharp and others also face criminal charges in the U.S. related to the alleged stock fraud.
Article content
Article content
Article content
