A British Columbia man has agreed to pay more than $300,000 to the province’s securities regulator after he was accused of defrauding investors and spending their money on gambling and personal expenses.
David Lawrence Pazurik of North Vancouver has agreed to repay $200,000 he raised from 14 investors, plus an additional $107,176 disgorgement covering the amount he gained through his misconduct, to settle the matter, the B.C. Securities Commission announced Tuesday.
According to the details outlined in the settlement agreement, Pazurik used online classified advertisements to solicit investors for what he described as an advertising and promotional merchandise business operating under the name Pazman Promotions.
The regulator says Pazurik told investors he would use their money to finance custom merchandise orders for his clients, earning the investors a portion of the profits over a short period.
But Pazurik instead spent $146,000 raised between January 2021 and May 2022 on gambling websites, personal items and payments to his friends and associates. From the $200,460 he raised over that period, he returned only $39,280 to investors.
“He did not pay the full amount of returns as promised in the profit-sharing agreements,” the securities commission wrote in the settlement agreement.
The BCSC concluded that Pazurik’s conduct amounted to fraud under the provincial Securities Act.
As part of the settlement, Pazurik is prohibited from acting as a director or officer of any issuer or registrant in the B.C. investment market and cannot promote, manage or trade any securities or derivatives outside his own personal accounts except under limited circumstances and only through a registered dealer.
The settlement notes that Pazurik had no prior disciplinary history with the securities regulator.
