A Victoria stock trader, who was charged for participating in a US$200 million fraud case in the mid 2000, was taken into custody to be committed for extradition to the United States this week, as ordered by a B.C. Supreme Court Judge in a Vancouver courtroom. (Photo: Tom Zytaruk)

Victoria stock trader in custody for potential extradition over alleged fraud case

Colin Jeffrey Heatherington claims he played only small part in the US$200 million fraud

A Victoria stock trader, who was charged for participating in a US$200 million fraud case in the mid 2000, was taken into custody to be committed for extradition to the United States this week, as ordered by a B.C. Supreme Court Judge in a Vancouver courtroom.

Colin Jeffrey Heatherington was a stock trader at Absolute Capital Management Holdings Limited (ACMH) from 2004 to 2008, and allegedly took part in numerous cross-trades of penny stock companies which eventually caught the attention of American securities regulators.

READ ALSO: Williams Lake woman pleads guilty to fraud over $5,000 involving Special Olympics Society

Penny stocks are low-priced securities of very small companies, typically traded on the ‘over-the-counter’ market, rather than on a national exchange.

U.S. authorities allege Heatherington was involved, along with others, in a cross-trading scheme — manipulating and artificially inflating the price of the securities of 11 American penny stock companies. The securities were handled by eight offshore hedge funds — the Absolute Funds — which ACMH was the investment manager and Heatherington regularly executed the cross-trades.

READ ALSO: Woman at large facing 30 fraud-related charges with links across B.C.

According to U.S. authorities, the cross-trading within the Absolute Funds gave the impression that the penny stocks were performing well in the market and that Heatherington and others received inflated profits by way of investments, trading fees and commissions.

According to the ruling, Absolute Funds lost at least $200 million, while Heatherington and his co-conspirators profited by at least US$11.6 million.

Heatherington claims he didn’t intentionally manipulate the stock market or that anyone was intentionally deprived, stating the allegations are too generalized in an effort to ensnare him, suggesting this is due to the fact that the man mainly responsible cannot be extradited from his native Germany.

Counsel for Heatherington asserts he only played a minor role as a stock trader in a complex scheme that was directed by other people.

“The test is whether a reasonably instructed jury could convict Heatherington, not whether it would convict him,” stated the judge.

The federal justice minister must now decide whether to order Heatherington surrendered for extradition.



kendra.crighton@blackpress.ca

Follow us on Instagram
Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Saanich councillors scurry to ban rat poisons on municipal properties

A ‘small but important first step’ to protect local wildlife, councillor says

No swimming or skating at Juan de Fuca rec centre for now

The Q Centre to reopen starting on July 13

Sidney’s Star Cinema looks to reel in audience with reopening

It’s lights, camera, action — again — for Sidney’s Star Cinema in… Continue reading

Unemployment surpasses historic high in Greater Victoria, tourism hit hard

Hospitality and tourism sectors hurting as pandemic continues

Victoria tattoo shops respond to sex assault allegations against male artists

Carne Tattoo and Painted Lotus Studios respond to allegations

VIDEO: Langford cat missing 18 months reunited with family

Blue the cat found at Victoria museum 17 kilometres from home

Greater Victoria Crime Stoppers wanted list for the week of July 7

Greater Victoria Crime Stoppers is seeking the public’s help in locating the… Continue reading

POLL: Would you get a vaccine for COVID-19 when it is available?

With the number of positive COVID-19 tests skyrocketing across much of the… Continue reading

VIDEO: Alberta man rescues baby eagle believed to be drowning in East Kootenay lake

Brett Bacon was boating on a lake in Windermere when he spotted the baby eagle struggling in the water

Vancouver Island business ad unintentionally features OK gesture linked to white supremacy

Innocuous ‘OK’ gesture in cleaning franchise advertisement gets flak on social media for ‘supposedly’ promoting white supremacy

Comox Valley RCMP looking for missing woman

Ami Guthrie was last seen in Courtenay in early July

Conservationists raise concerns over state of care for grizzly cubs transferred to B.C. zoo

‘Let them be assessed now before their fate is sealed,’ urges B.C. conservationist Barb Murray

B.C.’s COVID-19 job recovery led by tourism, finance minister says

Okanagan a bright spot for in-province visitor economy

National Kitten Day aka the ‘purrfect’ day to foster a new friend

July 10 marks National Kitten Day, a special day to celebrate all things kittens

Most Read