British Columbia Securities Commission sanctions Novum AI director with CAD 30,000 payment and 25-year market ban for misleading statements, obstruction and unregistered trading

The British Columbia Securities Commission announced sanctions against Colin Frederick Eggen, the sole director of Novum AI, after he admitted to making false or misleading statements, trading in securities without being registered or exempt, and obstructing the Commission’s investigation. Eggen paid CAD 30,000 and accepted a 25-year ban from the investment market, while Novum AI is permanently banned from participating in the capital markets. Between 2022 and 2023, Novum AI entered into investment contracts with 12 people who invested about CAD 480,000 in total, and all investors lost all of their money. The company claimed it used algorithmic trading to generate annual returns of up to 150 per cent and its website stated that its technology was developed by more than 60 scientists, researchers and financial analysts, that its fund size was CAD 50 million, and that returns were 60 to 150 per cent per year; the Commission stated these claims were false or misleading, noting the fund size was approximately CAD 500,000 and the fund never generated those returns. As part of the sanctions, Eggen is banned for 25 years from being a registrant, engaging in promotional activities, holding management roles in the investment market or trading securities, except in his own account through a registered dealer or registrant. He is also prohibited from being a director or officer of any issuer, except his own holding company if he is the only shareholder.