02/25/2015 03:52 EST | Updated 04/27/2015 05:59 EDT

Developers penalized after losing $3.6 million in illegally raised securities

VANCOUVER - The B.C. Securities Commission has fined and issued bans for two real estate developers for illegally distributing securities.

A panel found that between 2006 and 2010, Michael Knight and Jeffrey Wiegel raised $3.6 million selling securities without a prospectus and without being registered.

That money is gone — the commission says many individual investors lost $50,000 to $100,000 each.

Knight has been ordered to pay a $300,000 penalty and is permanently banned from trading in securities, being a corporate officer, working in investor relations or acting in any capacity in the securities market.

Wiegel faces a $100,000 fine and a 10-year ban on being a corporate officer or doing anything in connection with the securities market.

Both have been ordered to pay back the millions they raised and lost.