The British Columbia Securities Commission has accused a company that claimed to trade foreign exchange markets of operating a fraud after alleging that most investor money was diverted to repay earlier investors and fund personal spending, including the purchase of a Rolex watch, restaurant meals, travel and a tattoo.
In a Notice of Hearing published on 15 July, the regulator alleges that For the People FX Inc. and its sole owner, Robert George Henry Tyrer, raised approximately C$2.6 million from 85 investors between January 2022 and May 2024 by claiming funds would be used for foreign exchange trading. The BCSC alleges the company also carried out an illegal distribution of securities by selling investments to dozens of investors without filing a prospectus or qualifying for an exemption.
The allegations have not been proven before the Commission. Tyrer and the company have been ordered to appear before the BCSC on 18 August if they wish to contest the allegations before a hearing is scheduled.
BCSC Says Most Investor Money Never Reached The Forex Market
According to the Notice of Hearing, investors entered either loan agreements or profit-sharing agreements with For the People FX. Tyrer allegedly told investors the business generated returns by retaining a portion of profits earned through foreign exchange trading.
The BCSC acknowledges that some forex trading did take place. However, it alleges the company “grossly overstated” both the scale of its trading activity and its profitability while promoting returns of up to 100% and making guarantees about investment performance.
The regulator alleges that approximately C$1.9 million of the C$2.6 million raised was spent on purposes unrelated to trading.
Those funds allegedly financed repayments to existing investors as well as a range of personal expenditures, including:
- US$69,245 for a Rolex watch
- C$31,750 in rent
- C$9,345 for personal training and yoga
- C$3,000 for a tattoo
- Travel expenses
- Restaurant meals
- Retail purchases
The regulator alleges that investor money was therefore used in a manner materially different from the representations made when funds were raised.
48 Investors Allegedly Received Securities Without Prospectus
Alongside the fraud allegations, the BCSC alleges that For the People FX and Tyrer illegally distributed securities to 48 investors.
Under British Columbia securities law, companies offering investment contracts or other securities generally must either file a prospectus or qualify for an exemption from that requirement. A prospectus provides prospective investors with detailed information about the issuer, its financial condition, business activities and investment risks.
The Commission alleges that neither requirement was satisfied for dozens of investors who participated in the offering.
The case highlights a recurring issue in retail investment frauds, where businesses structure investments as loan agreements or profit-sharing arrangements while still falling within the legal definition of securities.
Regulator Alleges Investors Received False Updates
The Notice of Hearing also alleges that Tyrer and the company provided investors with false or misleading explanations when requested withdrawals or information about their investments.
According to the BCSC, investors were told on various occasions that:
- the company’s bank account had been frozen, preventing withdrawals;
- the BCSC had frozen company funds but the money remained safe; and
- investor account balances were higher than they actually were.
The regulator further alleges that one investor received an account statement that did not accurately reflect the funds held on their behalf.
If proven, those statements could constitute misleading representations made to existing investors while funds continued to be solicited or managed.
Director Personally Named In Enforcement Action
The BCSC alleges Tyrer personally authorized, permitted or acquiesced in both the alleged fraud and the illegal securities distribution while serving as director and officer of For the People FX.
According to the regulator, Tyrer lived in British Columbia for part of the relevant period and maintained the company’s office within the province while investor funds were being raised.
By naming both the company and its sole owner, the Commission is seeking to establish personal responsibility rather than limiting the allegations to the corporate entity.
Forex Investment Schemes Continue To Draw Regulatory Scrutiny
Foreign exchange trading remains one of the most frequently cited investment themes in retail fraud cases because legitimate forex markets can be difficult for investors to verify independently. Fraudulent operators often exploit that complexity by claiming proprietary trading strategies, guaranteed returns or unusually consistent performance while providing limited evidence of actual trading activity.
Canadian securities regulators have repeatedly warned investors to exercise caution when approached with investment opportunities promising high returns from forex, cryptocurrency or other leveraged trading strategies, particularly where operators are not registered or cannot provide independently verifiable performance records.
The allegations against For the People FX follow a pattern seen in numerous investment fraud cases, where regulators claim investor money was diverted to personal spending or used to repay earlier investors rather than invested as promised.
The BCSC’s Notice of Hearing represents allegations only. No findings have yet been made by the Commission, and the allegations remain to be determined through the regulatory hearing process.
