
While most scammers are in the business of bankrupting others, some are discovering the perks of going bankrupt themselves. In 2015, a B.C. couple was found to have pulled off a classic pump-and-dump: They convinced hundreds of people to invest in a small oil and gas company, inflated the share price for their benefit, and left investors with worthless shares. When the scam was uncovered, the province’s securities commission ordered the fraudsters to pay back the $5.6 million they made off the scam, plus $13.5 million in administrative fees. But they declared bankruptcy to avoid paying. The case was heard in Canada’s highest court, which ruled this summer that while the couple still has to repay $5.6 million, the $13.5 million in fees would be forgiven because they weren’t tied to the fraudulent behaviour. That decision stirred the pot, with regulators arguing it would make it easier for future scammers to dodge full accountability. The good news is that scammers still have to repay the money they stole from their victims.