(Pexels/Contributed)

Okanagan man to pay $70K to BCSC for spending investor funds for personal use

According to the BCSC, a Kelowna man used $480,000 of invested funds for personal purposes.

A Kelowna man who raised money for the development of a blockchain platform will pay $70,000 to the British Columbia Securities Commission (BCSC) for using funds he raised from investors for personal purposes.

Francesco Servedio received $3.2 million from investors between March 2015 and July 2017 to develop a blockchain platform that would use a new cryptocurrency. The cryptocurrency, which could be exchanged for bitcoin, was used as a form of payment by a limited group of merchants.

When the funds were invested, he did not indicate that he would use the money for personal purposes, which violates the Securities Act’s provision on misrepresentation.

When the platform stopped operating in 2017, Servedio was able to return nearly the full amount of the original funds raised to investors because the price of bitcoin had risen during this period.

In addition to the immediate payment, Servedio is prohibited for 10 years from:

• Relying on an exemption in the Act, regulations or a decision;

• Becoming or acting as a director or officer of an issuer or registrant;

• Becoming or acting as a registrant or promoter;

• Advising or acting in a management or consultative capacity in the securities or derivatives market;

In addition, Servedio is unable to engage in promotional activities by, or on behalf of, an issuer, security holder or party to a derivative, or someone who could reasonably benefit from the promotional activity.

READ MORE: Kelowna orchardist erects bird condo to save fruit

READ MORE: Federal minister meets with female business owners in Kelowna


@amandalinasnews
amandalina.letterio@kelownacapnews.com

Like us on Facebook and follow us on Twitter.

InvestigativeInvesting

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

A medical worker prepares vials of the COVID-19 vaccines, Chinese Sinopharm, left, Sputnik V, center, and Pfizer at a vaccine centre, in the Usce shopping mall in Belgrade, Serbia, Thursday, May 6, 2021. Serbian authorities are looking for incentives for people to boost vaccination that has slowed down in recent weeks amid widespread anti-vaccination and conspiracy theories in the Balkan nation. The government has also promised a payment of around 25 euros to everyone who gets vaccinated by the end of May. (AP Photo/Darko Vojinovic)
38 new COVID-19 cases, more than 335k vaccines administered in Interior Health

Interior Health also to start targeted vaccinations in high transmission neighbourhoods

FILE PHOTO
Second doses of COVID-19 vaccine will be available, as AstraZeneca supply runs low: Interior Health

Province expecting large volumes of Pfizer BioNTech as age-based cohort immunization program ramps up

Greg Nesteroff and Eric Brighton, the historians behind popular Facebook page Lost Kootenays, are set to release a book of the same name and have just unveiled its cover showing the ghostly Hotel in Slocan City shortly before its 1953 demolition. Photo courtesy of Greg Nesteroff and Eric Brighton.
Popular historical Facebook page Lost Kootenays set to release book

128-page hard copy documenting history of East and West Kootenays coming this fall

Revelstoke’s Mayor Gary Sulz getting his COVID-19 vaccination on April 5. (Jocelyn Doll - Revelstoke Review)
Revelstoke is leading B.C.’s interior on vaccinations: Interior Health

Approximately 70% of the community has first dose of a COVID-19 vaccine

Revelstoke Fire Rescue Services responded to a fire at the Revelstoke Community Energy Corporation site Feb. 11, 2021. It was the fourth fire at the facility since it was built in 2005. (Revelstoke Fire Rescue Services photo)
Future uncertain for City of Revelstoke owned company

RCEC is using a backup system to provide heating after a fire forced the facility offline

(The Canadian Press)
Trudeau won’t say whether Canada supports patent waiver for COVID-19 vaccines

‘Canada is at the table to help find a solution’

Edmonton Oilers’ Connor McDavid (97) celebrates his 100th point this season with Leon Draisaitl (29) against the Vancouver Canucks during second period NHL action in Edmonton on Saturday, May 8, 2021.THE CANADIAN PRESS/Jason Franson
Edmonton superstar McDavid hits 100-point mark as Oilers edge Canucks 4-3

NHL scoring leader needs just 53 games to reach century mark

City of Vernon Coun. Dalvir Nahal proposed two blocks of Main Street be closed to bolster recovery for downtown businesses amid the COVID-19 pandemic. (Caitlin Clow - Vernon Morning Star)
Vernon’s ‘support local’ Main Street closure would cost city $24K, staff say

Bylaw costs, loss of parking revenue and equipment logistics behind price tag

Join Black Press Media and Do Some Good
Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Five properties have been added to the Lake Country fire protection zone, after council moved to expand the local service area Tuesday, May 4, 2021. (Google Maps)
Lake Country expands fire protection zone, covering 5 exposed properties

The properties petitioned to join the local service area after being left out ‘for reasons unknown’

VSAR’s Air Rescue One unit assisted in a rescue in West Kelowna May 3, 2021. (VSAR screenshot)
VIDEO: VSAR’s Air Rescue One team assists in West Kelowna Rescue

The Vernon Search and Rescue helicopter team pulled off a successful rescue Monday

Peachland resident and cleanup volunteer Lloyd Stinson Sotas holds up a discarded TV riddled with bullet holes. (Aaron Hemens/Capital News)
PHOTOS: Peachland residents clean up community watershed

More than 70 people gave back to Mother Earth by assisting with the cleanup

Officials are surveying the streets of Vernon to get a better sense of the issue of homelessness in the city, as part of the province’s point-in-time homeless count for 2021. (Brendan Shykora - Morning Star)
Province conducts homeless count in Vernon

It’s the first time Vernon has been included in the provincial homeless count

Most Read