Sep 9, 2026
A British Columbia resident who pleaded guilty to US securities fraud conspiracy is facing a hearing in Vancouver that could lead to his removal from Canadian capital markets.
According to a report by Business in Vancouver, Steve Marko Bajic admitted in November 2023 to a US federal court judge in Boston that he was involved in orchestrating multiple pump-and-dump schemes.
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The U.S. Attorney’s Office alleged that Bajic used a network of foreign shell companies to hide his beneficial ownership of shares in dozens of US penny stock firms. These holdings should have been disclosed to the US Securities and Exchange Commission.
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Bajic, a dual citizen of Canada and Croatia, conducted covert promotional campaigns to inflate demand for the shares. He then sold them through banks and brokerages that were misled by the scheme.
The fraudulent activities generated tens of millions of dollars in trading proceeds, with much of the money going to control persons behind the involved companies.
Ties to Vancouver mastermind network
Court proceedings involving other accused fraudsters name Bajic as a client of West Vancouver resident and former lawyer Fred Sharp.
American regulators and prosecutors alleged in parallel civil and criminal filings starting in August 2021 that Sharp served as the primary operator of numerous fraudulent schemes based out of his Vancouver offices.
Sharp was held liable for fraud in civil proceedings and owes US$52.9 million, with the SEC pursuing his assets in BC Supreme Court. He continues to face unproven criminal charges.
Bajic avoided a maximum five-year prison term and was sentenced to one day of time served. He was ordered to forfeit US$837,734 in illegal profits. The US Attorney’s Office chose not to seek restitution because of the high volume of victims involved.
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Regulators seek total ban on Canadian market activity
Nearly three years after his guilty plea, the BC Securities Commission is pursuing a reciprocal order application against Bajic to mirror the capital market bans imposed against him in the U.S.
In a November 2025 enforcement application, director of enforcement Doug Muir wrote that market manipulation and fraud rely on deceit and that Bajic’s participation in local capital markets would present a significant risk to investors and market integrity.
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Muir added that given the integration of cross-border financial markets, damage to US market reputations threatens Canadian investor confidence in general.
The commission is seeking a blanket prohibition preventing Bajic from trading securities, acting as a director or officer of a company and promoting, managing or advising share-issuing companies.
The application is part of broader enforcement action by the commission against several individuals linked to Sharp, including Delta resident Jackson Friesen, Avtar Singh Dhillon and Zhiying Yvonne Gasarch.
In a civil fraud complaint where Gasarch was found liable, regulators alleged that Bajic was in direct contact with her to distribute sales proceeds from the scheme.
Facing domestic accountability
While Bajic managed to avoid extended prison time in the United States, his upcoming hearing before the BC Securities Commission could permanently cut off his access to Canadian financial markets, signaling that cross-border fraud co-conspirators will ultimately face accountability at home.
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Leslie Kennedy served as an editor at Thomson Reuters and for Star Media Group, followed by a number of years as a writer and editor and content manager in marketing communications, before returning to her editorial roots. She is a graduate of Humber College’s post-graduate journalism program and has been a professional writer and editor ever since.
