Snarkhunt Canadian Art Fraud Legal Toolbox -Myassignmenthelp.Com

Question: Discuss About The Snarkhunt Canadian Art Fraud Legal Toolbox? Answer: Introducation Ian Thow had engagement in two key fraud schemes with the involvement of non-existing investments. Purportedly, the initial scheme was regarding shares and the taxes imposed on them in the Berkshire Investment and National Commercial Bank of Jamaica. Purportedly, the next scheme was based on mortgages of short- term development (CanLII, 2754, 20). Thow also used his companies under private holding such as 657594 B.C. Limited, Vancouver Island Jet, and AYG Investments for processing investment funds without the reference of his name. Even though several individuals demanded a documentation, no investment statements, prospectuses, mortgage agreement, share certificates or documents were ever presented. There was permanent barring of Thow from trading securities and the job profile of investment fund promoter or manager in the year 2007. Individual Symptoms and Red Flags Thow ended up raising several red flags of compliance throughout the years like reinvestment money without the permission of client, living way ahead of the sources of his income from Berkshire, and the basic absence of transparency in the transaction (CanLII, 55, 23). Even if the fraudulent acts of Thow took place beyond the practice of Berkshire, it has been argued by some of the advisors, the compliance department of the company should have the ability of recognizing the warning indications (CanLII, Nelson Nelson, 2016). Thow was jailed in the year 2010 to defraud 20 clients worth 8 million dollars. At the trial, the actions of Thow were categorized in terms of classic Ponzi scheme. This is a type of fraud in which returns are provided by new investors to the current ones. Organizational Symptoms and Red Flags It was previously alleged by BCSC that Thow ended up defrauding several clients that were worth up to 30 million dollars. The decision of BCSC panel was set as per the submissions made by 26 former clients of Thow. Between the year 2003 and 2005, the former clients made collective investment of 8.7 million dollars, primarily in shares and loans of construction related to a Jamaican bank (CanLII, 2754, 18). There was never any existence of these investment. Instead, Thow ended up taking money entrusted for investment in the clients while spending individual lavish lifestyle, including several luxury vehicles along with individual private jets. Behavioural Symptoms and Red Flags When considering the personality of Thow, the behavioural information came as accusations through individuals to trade securities beyond the approved role played by the MFDA member. There was commitment of fraud by Thow off-book, without any evidence that anyone at organization should have awareness of the improprieties. Thow had an expensive lifestyle, with expensive homes, furniture, jewellery, and clothing, private jets, and helicopters for commutation (CanLII, Duffy, 2015). Thow also had the habit of showing off his wealth across public places, with the promise of huge donations to prominent causes and institutions, and exorbitant bid values at charity auction. Additional Red Flags In the current era, Thow is simply reviled as he was applauded once again. His personally admired ambition is identified as sociopathic unscrupulousness (CanLII, 2754, 16). His grand generosity and lifestyle can be perceived as shameless self-promotion, sleazy sycophancy, and blatant waste. The withdrawal of the complaint should not have allowed the investigation of company. All of this would have been required for obtaining written documentation and confirmation to corroborate Thow and the dealings of the individuals (CanLII, Nelson Nelson, 2016). Key Learnings According to the guidelines of MFDA regarding supervisory investigation, every member has the responsibility of performing maximum investigation for suggesting the chances regarding contravention of law provisions or the contravention of regulatory mandates (CanLII, 2754, 12). In the case, the companies should have proceeded the investigation of allegations without or with their assistance. It was stated that further investigation allowed the issues of compliance, while meriting additional investigation. If these matters had been investigated, additional red flags and duty would have been continued in context with additional red flags (CanLII, Wilson, 2017). Defence can be established against additional claims for compensation in alternate proceedings of dispute resolution and civil litigation with non-clients and clients who were making investment with Thow. Conclusion As reflected in the case, various aspects of Ian Thow case help understanding how his behaviour in life, in the organization, and in behavioural terms. Every individual shows some red flags and indications of wrong conduct. It is necessary to consider these red flags seriously, specifically in the overall enforcement of legal rules and regulations. It is necessary to obtain soundness related to the regulatory governance. Thow had made rapid investment and several complaints were retracted which reduced the scope of success in the case. References Duffy, Andrew. (2015). Ian Thow denied trip to Mexico in Parole-Board Reversal. Times Colonist. (CanLII) Accessed from: https://www.timescolonist.com/business/ian-thow-denied-trip-to-mexico-in-parole-board-reversal-1.1702056 Duffy, Andrew. (2014). Convicted fraudster Ian Thow granted vacation extension. Times Colonist. (CanLII) Accessed from: https://www.timescolonist.com/business/convicted-fraudster-ian-thow-granted-vacation-extension-1.1267032 Nelson, J., Nelson, A. (2016). Snarkhunting and the Canadian Art Fraud Legal Toolbox.J. Art Crime,16, (CanLII) 25. Nott et al Re [2010] IIROC No. 55, pp. 1-68 (CanLII) Accessed from: https://www.iiroc.ca/Documents/2010/fb22fc44-6473-48ae-8a1c-a0d9166b5d73_en.pdf v. Thow, 2010 BCPC 378 BCJ No. 2754, pp. 1-21 (CanLII), Retrieved on 2018. Accessed from: https://www.albertasecurities.com/Notices%20Decisions%20Orders%20%20Rulings/Enforcement/THOW%20Ian%20Gregory%20DEC%202008%2003%2027%202810966%20v1.pdf Wilson, Carla. (2017). Securities body sues convicted fraudster Ian Thow for $250,000. Times Colonist. (CanLII). Accessed from: https://www.timescolonist.com/news/local/securities-body-sues-convicted-fraudster-ian-thow-for-250-000-1.23110963