The man who was caught cheating an investor of a million dollars by falsely claiming ownership of the Sooke Harbour House hotel is facing an additional $600,000 in penalties, according to a B.C. Securities Commission panel.
The BCSC ruled earlier this year that Sooke’s Timothy Craig Durkin, a director of SHH Holdings Limited, got a seven-figure investment after stating SHH owned all shares of the Sooke Harbour House hotel through a subsidiary when, in reality, it did not own any shares.
On Monday, a sanctions case was held against Durkin, where he was given a $600,000 penalty, as well as several other restrictions in relation to his scheme. Additionally, another $1 million is being fined against the SSH company itself, for a total of $1.6 million in penalties.
In addition to the monetary penalties, Durkin is permanently banned from participating in B.C.’s securities market. He is also being forced to immediately resign from any directorial role he holds as a director or officer of an issuer or registrant, and will be prohibited from:
- Trading in or purchasing any securities or derivatives
- Becoming or acting as a director or officer of any issuer or registrant
- Becoming or acting as a registrant or promoter
- Advising or otherwise acting in a management or consultative capacity in connection with activities in the securities or derivatives markets
- Engaging in promotional activities by or on behalf of an issuer, security holder or party to a derivative, or another person that is reasonably expected to benefit from the promotional activity
- Relying on any exemptions set out in the Securities Act, the regulations, or a decision
The million-dollar penalty is representative of the amount of the initial investment.
The amount of money Durkin owes in penalties to the BCSC will be reduced by what is repaid to the investor.
With files from CHEK’s Ethan Morneau.