The British Columbia Securities Commission (BCSC) announced Feb. 5 that it has fined and permanently banned Lynne Rae Nickford (a.k.a. Lynne Rae Zlotnik) from B.C.'s capital markets for fraud.
Last August, a BCSC panel found that Nickford convinced 13 investors to loan money to or invest in her company Lynne Zlotnik Wealth Management (LZWM) in 2009 and 2010, and told the investors their funds would be used for LZWM's business operations and growth.
Spent investors’ money on personal expenses
The panel found that Nickford spent over $318,000 of the investors' money on personal expenses unrelated to her business.
In its decision, the BCSC panel stated, "Nickford represents a significant risk to investors and to the integrity of our capital markets. Broad permanent market prohibitions against Nickford are necessary and appropriate to protect our capital markets and the investing public."
The BCSC has ordered Nickford to resign any position she holds as a director or officer of an issuer or registrant. She has also been ordered to pay an administrative penalty of $300,000 and a disgorgement order of $318,141.
Prohibited from trading or purchasing securities
The BCSC also ordered that Nickford be permanently prohibited from trading in or purchasing any securities or exchange contracts, becoming or acting as a director or officer of any issuer or registrant, becoming or acting as a registrant or promoter, acting in a management or consultative capacity in connection with activities in the securities market, and engaging in investor relations activities. The panel also permanently cease traded securities of LZWM.