A BCSC panel said
The panel said Michaels denied that he advised clients on the purchase or sales of securities, or committed fraud, and said he characterized his business as a successful sales operation.
But the panel concluded that Michaels preyed on clients by frightening them and misleading them to invest in the exempt market, which was more risky than conventional investments.
"In fact. . . what Michaels was running was not a legitimate sales business but a massive fraud," the panel said in a ruling dated
"Through dishonesty and misrepresentation, he put his clients' money at risk. As a result, they have lost millions of dollars."
The panel said that Michaels lured clients with a the weekly informercial called "Creating Wealth with
It said Michaels paid C-FAX about
The panel will decide penalties after conducting a separate process.
Note to readers: This is a corrected story. An earlier headline said Michaels was the infomercial's host. In fact, another man was the host who asked Michaels questions.
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