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A B.C. lawyer involved in a $34-million fraudulent scheme to manipulate share prices has been banned for life from trading or purchasing securities.

According to a March 29 B.C. Securities Commission decision, Vancouver-based lawyer Faiyaz A. Dean made US$120,000 for his part in the scheme but was ordered to pay a civil penalty of US$160,000 when the United States Securities and Exchange Commission caught up with him.

Dean argued to the B.C. Securities Commission that his role in the scheme was "relatively minor" to which the Commission replied, "he is wrong."

"He had an essential role in the market manipulation and, because of his actions, investors were harmed," the Commission said. "Because of Dean’s actions, his co-conspirators were enriched by US $34 million."

The decision says in 2018 Dean was a practicing lawyer in B.C. when the United States Securities and Exchange Commission accused him of a fraudulent scheme involving the unregistered sales of and manipulating the market for shares of a company called Biozoom Inc.

The following year the United States Securities and Exchange Commission ruled Dean must pay a civil penalty of US $160,000 for his part in the pump-and-dump scheme and banned him from trading in penny stocks for life.

According to a Business in Vancouver article in 2020, he was then criminally charged in relation to securities fraud and money laundering in Arizona. 

According to the decision, Dean is still licenced to practice law in Washington State but is currently a non-practicing lawyer in B.C.

In 2021 the Law Society of B.C. accused Dean of using his trust account to receive roughly $1.5 million without providing legal services and engaging in activities that "assisted in or encouraged dishonesty, crime or fraud." A date for a hearing has still not been scheduled.

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"Dean’s fraudulent market manipulation involved artificially high stock prices which were sold to unsuspecting investors who, consequently, suffered harm when the prices fell," the decision reads.

Dean argued there was "no evidence" that the fraudulent scheme resulted in harm to investors.

The Commission pointed out that only $14 million of $34 million was returned to harmed investors.

Dean also argued that the US$120,000 he received was for legitimate professional services.

The Commission called the claim "audacious."

"We find that he was enriched," the decision reads.

The Commission goes on to say Dean told his co-conspirators that he was a specialist in taking companies public and used his legal skills to enable securities fraud.

"He continues to be a serious risk to investors and British Columbia’s capital markets," the Commission ruled.

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Ultimately, he was permanently prohibited from trading or purchasing securities or derivatives, along with various other financial regulations.

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