BCSC Wins Legal Victory to Collect Sanctions from Fraudster

BCSC News Releases

Filed March 18th, 2026

Detected March 20th, 2026

Summary

The BC Court of Appeal upheld a BC Supreme Court decision ordering a fraudster to forfeit payments from his registered accounts to the BC Securities Commission (BCSC). This ruling allows the BCSC to collect financial sanctions totaling $36.7 million from Earle Douglas Pasquill, who perpetrated a significant investment fraud.

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What changed

The BC Court of Appeal has affirmed a lower court's decision, ruling that payments from Earle Douglas Pasquill's Life Income Fund (LIF) accounts are not exempt from collection efforts by the BC Securities Commission (BCSC). This legal victory allows the BCSC to seize annual payments from Pasquill's LIF accounts, which total over $550,000 as of 2024, to help satisfy the $36.7 million in sanctions he owes for perpetrating a major investment fraud.

This decision means that Pasquill must forfeit any payments received from these registered accounts to the BCSC, with the funds to be made available to victims of the fraud. While the court dismissed the BCSC's cross-appeal regarding the appointment of a receiver, the primary objective of collecting sanctions from these specific accounts has been achieved. Pasquill owes $15 million in administrative penalties and $21.7 million in ill-gotten gains, and has made no payments to date.

What to do next

Monitor BCSC collection efforts regarding Pasquill's LIF accounts.
Review internal policies for collecting financial sanctions from registered accounts in light of this precedent.

Penalties

Owes $36.7 million in sanctions, including a $15 million administrative penalty and $21.7 million in ill-gotten gains.

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News Release

BCSC wins another legal victory in effort to collect financial sanctions from fraudster

### Date:

2026-03-19
- ### Number:

2026/017

Vancouver – The BC Court of Appeal has upheld a BC Supreme Court decision that ordered a man to forfeit annual payments from two of his registered accounts to the BC Securities Commission (BCSC).

The Court of Appeal determined that the Pension Benefits Standards Act does not make payments from Earle Douglas Pasquill’s two Life Income Fund (LIF) accounts exempt from the Commission’s collection efforts.

The March 18 ruling means that Pasquill, who perpetrated one of British Columbia’s largest investment frauds and owes the BCSC $36.7 million, must forfeit to the BCSC any payments from his LIF accounts.

LIFs are a type of tax-deferred registered account that has a mandatory withdrawal between a minimum and maximum amount. Pasquill’s accounts total more than $550,000 as of 2024, and any payments the BCSC receives from them will be made available to victims of the fraud.

The Court dismissed the BCSC’s cross-appeal of the Supreme Court judge’s decision not to appoint a receiver.

In 2014, a BCSC panel found that Pasquill and Michael Patrick Lathigee, who jointly directed and controlled the Freedom Investment Club, fraudulently raised a total of $21.7 million in 2008 through the sale of securities to nearly 700 investors without telling the investors about severe cash flow problems.

Pasquill owes the BCSC an administrative penalty of $15 million. He was also ordered to pay another $21.7 million, representing the ill-gotten gains that he and Lathigee obtained directly or indirectly as a result of the fraud. Pasquill has made no payment towards those sanctions.

About the BC Securities Commission ( bcsc.bc.ca )

The BC Securities Commission, an independent provincial government agency, strives to make the investment market benefit the public. We set rules, monitor compliance by industry, take action against misconduct, and provide guidance to investors and industry. As guardians of B.C.’s investment market, we’re committed to maintaining a market that is honest, fair, competitive and dynamic, enabling British Columbians to thrive.

Media Contact:
Elise Palmer
604-899-6830

Public inquiries:
604-899-6854 or 1-800-373-6393 (toll free)
inquiries@bcsc.bc.ca

Learn how to protect yourself and become a more informed investor at www.investright.org