It should have been a case of “once burnt, twice shy”.
Instead, a convicted fraudster has been found guilty of ripping off two B.C. investors for a second time— promising they could regain money he stole from them in 2007, by sinking their money into a new scheme.
Unfortunately, that scheme was a scam, too.
And Terry James Minnie, aka James Warring Minnie, put the money directly into his own pocket.
“He used the money for his own personal purposes, including upscale restaurants, hotels, liquor, and his own personal expenses,” said Doug Muir, director of enforcement for the B.C. Securities Commission (BCSC).
Minnie, 56, has been convicted of two counts of criminal fraud over $5,000 in B.C Provincial Court in Victoria.
Doug Muir, director of enforcement for the B.C. Securities Commission, says Minnie pocketed investors’ money. (BCSC/ Supplied)
“This case was particularly serious because Mr. Minnie had committed investment fraud in the past … that’s why the Crown in this case asked for a lengthy sentence,” said Muir.
Minnie, a resident of Parksville, has been sentenced to four and a half years in prison — the longest term ever imposed, as a result of a criminal investigation conducted by the BCSC.
Due to time already served behind bars awaiting trial, that sentence has been reduced to 242 days.
Papua, New Guinea, Venezuela fake schemes
In 2007, Minnie convinced investors to sink $1.8 million into a fake lumber project in Papua New Guinea. He served five years for that crime.
But once released, the BCSC says Minnie went back to two of his former victims and convinced them they could recoup their losses and make a substantial profit by investing in a Venezuelan hedge fund.
Turns out that fund didn’t exist either.
And between 2014 and 2016, he took the two B.C. residents for over half a million dollars.
Minnie was arrested at the Beach Acres Resort in Parksville in October 2017 by the Oceanside RCMP.
He was held in custody since his arrest.
Now, in addition to his jail time, Minnie has been ordered by the courts to repay the investors $543,000 in restitution. After his release, he won’t be raising that money by promoting more investment schemes.
The BCSC has banned Minnie from trading or purchasing securities or engaging in investor relation activities — permanently.
CBC Vancouver’s Impact Team investigates and reports on stories that impact people in their local community and strives to hold individuals, institutions and organizations to account. If you have a story for us, email impact@cbc.ca.
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
