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'Magic Johnson' investment scam nets B.C. fraudster market ban

Jeffrey Shaughnessy admitted to duping investors and has now received a market ban from the B.C. Securities Commission.
A B.C. Securities Commission panel deemed Jeffrey Shaughnessy to be an ongoing risk to the investment markets.

A B.C. Securities Commission panel has issued a permanent market ban against a B.C. man who was previously convicted of fraud in June 2022.

Roughly 19 months after Jeffrey Shaughnessy was sentenced to a three-month conditional sentence after admitting he defrauded investors, the panel permanently prohibited him from becoming a director or officer of any registered company and from trading securities, among other restrictions, in a Feb. 12 ruling.

Shaughnessy specifically pled guilty to one count of "obtaining credit by false pretence or fraud."

The panel deemed Shaughnessy to be an ongoing risk to the investment markets.

“The fact that he admitted to his misconduct is not sufficient to outweigh those risks,” the panel stated.

In a press release from the commission, it was explained how in 2017 Shaughnessy convinced two couples to invest in what he said was a Magic Johnson speaking event at the Park Hotel.

One couple invested $10,000 while the another couple invested $19,000.

“Instead of using the funds for their intended purpose, Shaughnessy spent it on personal expenses, including at a casino,” the commission stated.

The commission is a B.C.-government sanctioned body that issues administrative penalties, including market bans, fines and repayment orders.

The commission operates a webpage disclosing past criminal enforcement cases of people pursued and eventually found criminally guilty.

The cases begin with the commission’s Criminal Investigations Branch, which forwards charge recommendations to Crown counsel for prosecution.

Since 2008 there are 32 such instances of successful criminal prosecution.

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