Victoria fraudster David Michaels loses appeal, must pay $23M

British Columbia's top court has refused to overturn the case of a former mutual funds salesman who defrauded hundreds of seniors by selling them $65 million in exempt securities.

David Michaels appealed a $17.5-million fine imposed by the B.C. Securities Commission, which found he illegally and fraudulently advised 484 people without being properly registered to sell securities.

• Victoria investment adviser DavidMichaelsfined $23M
• DavidMichaelsguilty of $65M investment fraud

The commission also ordered him to pay back the $5.8 million he earned in commissions and marketing fees for securities by advising seniors to sell their stocks, bonds and mutual funds to buy high-risk exempt market securities, which can be sold without filing a prospectus, and insurance-based investment products.

The B.C. Court of Appeal has upheld the commission's findings of fraud and misrepresentation and the imposition of the fine in separate decisions for Michaels' activities between 2007 and 2010.

Michaels promoted his business through 45-minute weekly infomercials titled "Creating Wealth with David Michaels" on a radio station in Victoria, saying he loved helping seniors make money.

However, the court says almost all the investments are now worthless and that many of Michaels' clients have had their financial futures ruined.