Surrey Ponzi schemer gets 18 months house arrest

When I read the story about Anwar Badshah in the Surrey North Delta Leader, some obvious red flags leaped out at me. Last June, he pleaded guilty to three counts of fraud over $5,000 and was sentenced to 18 months of house arrest by a provincial court judge in Port Coquitlam. BCSC investigators described the Badshah promotion as a Ponzi scheme.

This was a serious crime. Documents on our website show that at least 150 people had invested more than $2.2 million with Badshah Communications Group Ltd. by the time the investigation was initiated.  The effect on these investors’ lives was devastating as voiced in the impact statements provided to the court.

One of the most obvious red flags in this particular investment scheme was the promise of very high returns – 100 per cent return within months of investing the money.

Another important red flag was the fact that the company was not registered with BCSC, a legal requirement for selling promissory notes to investors.

Finally, there was another hint that there might be something suspicious about this scheme. Mr. Badshah targeted members of the Fijian Muslim community, the community in which he was born and raised. This technique is called affinity fraud. It exploits the trust and friendships that exist in groups of people who have something in common.  Many affinity scams involve Ponzi schemes, making this a classic case of investment fraud.

If you hear about or have been approached with a investment scheme that just doesn’t sound right, don’t hesitate to contact us by email, phone, or online form for a second opinion.

Suggested Reading

In Your Community - January 2014

Helping our kids become better money managers

BC Securities Enforcement Roundup – May 2013

More Resources

Investor Watch: Understanding your pension plan is sound retirement planning

April 24, 2008 To get ready to retire it is important to think about how you will finance your retirement life. Knowing how much income you can expect once you retire is an essential part to any retirement plan. One common source of retirement income is a pension plan. A pension plan is an arrangement […]

New Year’s Resolution re your financial advisor: Ask for more accountability and better communications

In an article in globeinvestor.com, Dan Richards (Strategic Imperatives) makes the point that after last year’s market debacle, more people are doing their homework on how and where they should be investing their money. The net result is that they are asking tougher questions, requiring financial advisors to spend more time and effort responding with evidence and […]