A B.C. man’s U.S. sanctions for a penny-stock pump-and-dump scheme have triggered a permanent trading ban in Ontario, even though the conduct occurred outside Canada

A British Columbia resident sanctioned in the U.S. for his role in a penny-stock pump-and-dump scheme is now permanently banned from trading and serving as a director or officer in Ontario — not because he harmed Canadian investors, but because regulators say he poses a future risk.

Bradley J. Moynes, who served as president of Formcap Corp. and CEO of Digatrade Financial Corp., was hit with sanctions by the U.S. District Court in Massachusetts in 2023. Without admitting or denying the allegations, he consented to a final judgment that permanently barred him from dealing in penny stocks, restricted his trading to listed securities in personal accounts, and prohibited him from holding executive or director roles.

The court also ordered Moynes to disgorge US$1.3 million and pay a penalty exceeding US$200,000. The sanctions stemmed from a scheme in which he allegedly used offshore nominees to hide his ownership and paid promoters to inflate the stocks’ prices before selling into the artificial momentum — a strategy that generated nearly US$6 million in illicit proceeds, with US$1.3 million flowing to Moynes and Digatrade, much of it directed to his B.C.-based company, Vancap Ventures Inc.

The Ontario Securities Commission (OSC) brought the U.S. judgment to the Capital Markets Tribunal, arguing that the circumstances were sufficient to invoke its public interest jurisdiction. It emphasized that no direct connection to Ontario was required to justify action.

The tribunal agreed. Based solely on the U.S. findings and the OSC’s application, it issued a permanent ban without giving Moynes an opportunity to be heard. The OSC maintained that Moynes poses a risk to Ontario investors and that the order is necessary to protect the public interest and uphold the integrity of the province’s capital markets.