U.S. court issues $53M judgment against West Vancouver man

A U.S. federal court has made a US$53-million judgment against a West Vancouver man accused of fraud after he did not respond to the allegations.

Frederick L. Sharp, 69, did not respond in the U.S. district court for Massachusetts to allegations he masterminded a long-running “complex” scheme to facilitate penny stock fraud in hundreds of companies with gross sales of more than US$1 billion.

The U.S. Securities Exchange Commission's complaint was sent to Sharp by email, postal mail and in an attempted service to his West Vancouver home, according to U.S. court documents.

In a written ruling issued on May 12, U.S. judge William G. Young said as Sharp had failed to respond or answer the SEC's complaint, “the court accepts as true the factual allegations of the complaint.”

Sharp and others were charged with violating antifraud, registration and reporting provisions of the U.S. Securities Act. Sharp also faces criminal charges in the U.S. related to the alleged scheme.

The penalties of $53 million include a repayment of US$28.9 million in profits and calculated interest Sharp netted in the alleged scheme between 2011 and 2019 — and a fine of nearly US$24 million.

Sharp has 30 days from the date of judgment to pay.

As a result of the judgment, Sharp is also banned from participating in issuing, buying, offering or selling in U.S. markets.