Enforced despite ex-rep’s bankruptcy
BC Supreme Court clarifies limits of debt forgiveness in fraud cases
A British Columbia Supreme Court judge ruled…that a $6.8 million financial sanction imposed on a fraudster will not be erased upon his discharge from bankruptcy.
British Columbia Securities Commission (BCSC) had sought to ensure the sanction against Thomas Arthur Williams remained enforceable, even if his other debts were cleared through bankruptcy. The BCSC initially ordered Williams to pay the disgorgement—a sum representing funds obtained through wrongdoing—in 2016.
“There is a direct link between the disgorgement order debt and [Williams’s] deceitful misconduct,” the court stated.
Williams, a former registered mutual fund representative, was found by a BCSC panel in 2016 to be the architect of a Ponzi scheme. The scheme defrauded 123 investors of approximately..; plus, millions in administrative penalties.
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