Craigslist Poster Banned By BC Securities Commission

On October 3, 2012, the British Columbia Securities Commission found that Paul Stiles' craigslist postings for investments with Velocity Entertainment Inc. ("Velocity") were contrary to section 50(1)(d) of the BC Securities Act, which prohibits a person intending to effect a trade in a security from making a statement that the person knows or ought to know is a misrepresentation.

Stiles' 2011 and 2012 craigslist postings represented that Velocity was a film and television production house in Vancouver, and sought investments from the public, guaranteeing 12% interest on investments. Two Commission staff investigators, posing as investors, corresponded with Stiles, who made further representations about the investment opportunity, including non-compounded annualized returns of 200% or 152%-203%, respectively. Stiles had made similar postings in 2009 and 2010, and received a warning from the Commission in 2009.