In this edition of the Enforcement Roundup, we cover one British Columbia Securities Commission (BCSC) panel decision, one settlement agreement, and a notice of funds received.
BCSC Panel Decision
A BCSC panel found that Cook and CBM Canada’s Best Mortgage Corp. illegally distributed securities.
Cook, a Victoria, B.C. resident during the relevant period, was a mortgage broker registered in B.C., and the president and sole director of CBM. CBM was a mortgage broker company registered in B.C. that was dissolved in June 2014.
The panel found that between June and December 2010, Cook and CBM issued promissory notes to investors and, in doing so, engaged in illegal distributions. The panel also found that Cook was liable for CBM’s distributions.
The panel directed the parties to make submissions on sanctions according to the schedule set out in the findings.
BCSC Settlement Agreement
In the settlement agreement, Tan admitted that she fraudulently raised at least $30 million from investors through issuing promissory notes.
Tan agreed to pay $3 million to the BCSC in settlement of this matter. The BCSC will take steps to collect this sum after Tan has paid the amounts owing to investors. Tan also agreed to several market bans because of her misconduct.
Several investors started lawsuits against Tan, and one investor petitioned her into bankruptcy. Tan is currently an undischarged bankrupt. The court appointed a trustee to liquidate Tan’s assets and distribute proceeds to Tan’s creditors, including her investors.
BCSC Notice of Funds Received
In August 2014, a BCSC panel found that Bossteam E-Commerce Inc., Zhu, and Zhang committed fraud, illegally distributed securities, and withheld information from BCSC investigators.
On April 7, 2017, the BCSC applied to the Supreme Court of British Columbia for an order appointing Grant Thornton Limited as a Receiver to distribute to investors certain funds of Bossteam, Zhu, and Zhang.
The BCSC issued freeze orders against certain bank accounts that collectively held USD $9,725,899 and CAD $293,233. The BCSC also registered a charge on land Zhu owned and has collected approximately $122,810 from the sale of that land.
The BCSC encourages investors who lost money to Bossteam, Zhu, and Zhang to submit their proof of claim to the receiver before August 4, 2017. Information on how to submit a claim is available on the website bossteamclaims.com.
Report a Concern
If you have any concerns about a person or company offering an investment opportunity, please contact BCSC Inquiries at 604-899-6854 or 1-800-373-6393 or through e-mail at [email protected]. You can also file a complaint or submit a tip anonymously using the BCSC’s online complaint form.
InvestRight.org is the British Columbia Securities Commission’s investor education website.