B.C. man serving U.S. prison term for $215M stock fraud is permanently banned from provincial investment markets.
B.C. Man Faces Lifetime Ban After U.S. Stock Fraud Conviction
A British Columbia man now serving time in a U.S. prison for his role in a massive $215 million stock fraud has been permanently banned from participating in the province’s investment markets.
The B.C. Securities Commission (BCSC), the watchdog overseeing financial markets in the province, announced the lifetime ban this week. A panel found that Colin Jeffrey Heatherington, 51, is dishonest, lacks integrity, and that his calculated misconduct warrants permanent action to protect the public.
Massive Fraud Leads to U.S. Prison Sentence
In 2024, a California court sentenced Heatherington to three and a half years behind bars, followed by two years of probation. He also faces a restitution order totaling US$215 million, shared with another co-conspirator.
Heatherington pleaded guilty to conspiracy to commit securities fraud and wire fraud. The scheme manipulated penny stock prices to inflate hedge fund profits, generating millions in fees while leaving investors with massive losses.
Fraud Spanning Continents
The scheme, orchestrated through Absolute Capital Management Holdings, a Cayman Islands-based company, spanned offices in Mallorca, Spain, and lasted from 2004 to mid-2008. Heatherington helped manage eight hedge funds, overseeing billions of shares of U.S. penny stocks.
By using manipulative trading practices—like cross trading—Heatherington and his associates artificially boosted stock values, misleading investors and increasing the apparent value of the funds.
Long Legal Battle Ends in Extradition
The U.S. criminal case against Heatherington and others began in 2013. After years of resisting extradition, Heatherington finally agreed to be handed over in 2021.
He worked closely with Florian Wilhelm Jürgen Homm, 64, the German founder of Absolute Funds, who was indicted in 2013 and remains a fugitive in the U.S.
BCSC: Protecting Investors Is Priority
The BCSC emphasized that the lifetime ban is essential to safeguard the public from future misconduct. “The scale and deliberate nature of Heatherington’s actions make permanent sanctions the only adequate response,” the commission stated.
Investors in B.C. can now rest assured that Heatherington will never be allowed to operate within the province’s markets again.
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