Accessibility/Mobile Features
Skip Navigation
Skip to Content
Editorial News
Business
Classified Sites

The Canadian Press - ONLINE EDITION

B.C. regulator says man used infomercials to defraud 484 clients out of $65M

VANCOUVER - The British Columbia Securities Commission has ruled that 484 people were defrauded of $65 million over a 3 1/2-year period by a former mutual fund salesman who promoted investments through a weekly radio infomercial broadcast in Victoria.

A BCSC panel said David Michaels was paid $5.8 million in fees and commissions for sales of exempt market securities — a legal type of investment — to clients through deception and without advising them of the risks involved.

The panel said Michaels denied that he advised clients on the purchase or sales of securities, or committed fraud, and said he characterized his business as a successful sales operation.

But the panel concluded that Michaels preyed on clients by frightening them and misleading them to invest in the exempt market, which was more risky than conventional investments.

"In fact. . . what Michaels was running was not a legitimate sales business but a massive fraud," the panel said in a ruling dated Aug. 6 and released on Tuesday.

"Through dishonesty and misrepresentation, he put his clients' money at risk. As a result, they have lost millions of dollars."

The panel said that Michaels lured clients with a the weekly informercial called "Creating Wealth with David Michaels" broadcast on radio station C-FAX 1070, and by seminars in Victoria and Vancouver as well as meetings at his offices.

It said Michaels paid C-FAX about $2,000 for each weekly taped program, which was broadcast on Saturdays.

The panel will decide penalties after conducting a separate process.

Note to readers: This is a corrected story. An earlier headline said Michaels was the infomercial's host. In fact, another man was the host who asked Michaels questions.

  • Rate this Rate This Star Icon
  • This article has not yet been rated.
  • We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high. If you thought it was well written, do the same. If it doesn’t meet your standards, mark it accordingly.

    You can also register and/or login to the site and join the conversation by leaving a comment.

    Rate it yourself by rolling over the stars and clicking when you reach your desired rating. We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high.

Sort by: Newest to Oldest | Oldest to Newest | Most Popular 0 Commentscomment icon

You can comment on most stories on brandonsun.com. You can also agree or disagree with other comments. All you need to do is register and/or login and you can join the conversation and give your feedback.

There are no comments at the moment. Be the first to post a comment below.

Post Your Commentcomment icon

Comment
  • You have characters left

The Brandon Sun does not necessarily endorse any of the views posted. Comments are moderated before publication. By submitting your comment, you agree to our Terms and Conditions. New to commenting? Check out our Frequently Asked Questions.

letters

Make text: Larger | Smaller

Election 2014
Brandon Sun Business Directory
The First World War at 100
Why Not Minot?
Welcome to Winnipeg

Social Media

Canadian Mortgage Rates