Aggressive Enforcement By Securities Regulators Continues

On June 26, 2024, the Supreme Court of British Columbia (per Francis J.) granted the United States Securities and Exchange Commission (SEC) a Mareva injunction freezing the assets of Frederick Sharp, described by the Court as the "mastermind" of a complex pump-and-dump securities fraud scheme involving encrypted communications, shell companies, and a "clear pattern of deceptive behaviour."

When a Mareva injunction is granted, the defendant must typically prepare a list of their assets to aid in enforcement of the order. Mr. Sharp had opposed the injunction and sought a stay of proceedings on the basis that compelling him to produce an asset list potentially jeopardized his constitutional rights in both Canada and the United States, due to a technical distinction between his rights against self-incrimination under the Canadian Charter and the United States constitution.