FCNB Seeking a Market Ban
SAINT JOHN – The Financial and Consumer Services Commission wants to make sure nobody else is scammed by this New Brunswick man.
FCNB is seeking a market ban order against Fred Louis Sebastian based on a recent decision of the Financial and Consumer Affairs Authority of Saskatchewan to impose sanctions and restrictions on him. Sebastian now lives in Ludlow, New Brunswick.
The Saskatchewan hearing panel found that Sebastian defrauded an elderly investor in that province by making exaggerated claims regarding the potential for profit in a particular investment. He obtained a significant sum of money from the investor, but the panel found that he had no intention of actually investing the funds on her behalf. Also, he was not registered to solicit or sell investments in the province. Selling investments and making promises regarding returns on investments is a breach of the Securities Act, both in Saskatchewan and New Brunswick. Sebastian had been banned in Saskatchewan in 1981 from trading in the securities of a particular issuer.
“The Financial and Consumer Affairs Authority of Saskatchewan investigated Mr. Sebastian’s recent conduct and wanted to interview him about his dealings with an elderly woman but they discovered he was living here in New Brunswick,” explained Jake van der Laan, director of enforcement with the commission. “The finding of fraud in Saskatchewan and the longstanding regulatory intervention against Mr. Sebastian has led the commission here to seek market bans in New Brunswick to prevent him from causing harm to investors in our province.”
FCNB says one of the first steps consumers should take when approached with any investment opportunity is to ensure that the person they are dealing with is registered to sell investments in the province.
“Successful investing requires the skill and experience to understand the risks and potential rewards involved in a given investment,”van der Laan said. “This is particularly true of investments promoted outside registered investment dealers.”
Investors are urged to contact the commission if they have any concerns about unsolicited investment opportunities or the legitimacy of an investment opportunity.