Enforcement Roundup: April 2021

The April 2021 edition of the Enforcement Roundup summarizes five enforcement actions from the British Columbia Securities Commission (BCSC).

BCSC Enforcement

Sanctions

Jing “Janet” Zhang, Hunter Wei-Shun Wang (a.k.a. Hunter Wei Shun Wang), FS Financial Strategies Inc. (FS)

A BCSC panel previously found that Zhang and Wang obstructed justice by concealing or withholding, or attempting to conceal or withhold, information that was reasonably required for an investigation under the Securities Act.

Zhang has been ordered to pay $40,000 and Wang must pay $30,000. In addition to the financial sanctions, Zhang is prohibited for three years and Wang is prohibited for two years from various securities-related activities.

Read the news release for full details.

News Release

Settlement Agreements

HSBC Global Asset Management (Canada) Limited (GAM Canada)

HSBC Global Asset Management (Canada) Limited (GAM Canada) has agreed to pay $1,050,000 as part of a settlement agreement with the BCSC.

The firm has agreed to pay up to $700,000 to investors who suffered financial harm. It will also pay $350,000 to the BCSC, plus any part of the $700,000 not paid to investors.

The firm did not profit or receive an economic advantage from the required redemptions and it fully cooperated with the BCSC’s investigation.

Read the news release for full details.

News Release

Monita Hung Mui Chan, Marie-Joy Vincent, DFRF Enterprises LLC, DFRF Enterprises, LLC

Chan and Vincent must pay a total of $141,500 for participating in a US-based Ponzi and pyramid scheme that raised about US$15 million from more than 1,400 investors worldwide.

Chan must pay $135,000 to the BCSC, including $100,000 in disgorgement, representing the amount she obtained from the misconduct. Vincent must pay $6,500 to the BCSC. She did not profit from the misconduct – all of the money she raised she paid to Daniel Rojo Fernades Filho, the man who orchestrated the fraud.

Chan is prohibited for 10 years and Vincent is prohibited for eight years from various securities-related activities.

Read the news release for full details.

News Release

Francesco Servedio

Kelowna resident Servedio has agreed to pay $70,000 to the BCSC for using funds he raised from investors for personal purposes.

Servedio received $3.2 million from investors between March 2015 and July 2017 to develop a blockchain platform that would use a new cryptocurrency. He used $480,000 of the invested funds for personal purposes. When the funds were invested, he did not indicate that he would use the money for personal purposes, which violates the Securities Act’s provision on misrepresentation.

Servedio is also prohibited for 10 years from various securities-related activities.

Read the news release for full details.

News release

Halt Trade Order

Valorem Resources Inc.

The BCSC has issued a halt to the trading of securities of Valorem after unsubstantiated statements about the company appeared on a financial news website, followed by an increase in trading of its shares.

The information on the-financialnews.com made projections about the mining reserves at Valorem’s Black Dog Lake property in Quebec, as well as Valorem’s future share price.

The halt trade order against trading Valorem securities extends until May 21, 2021.

Read the news release for full details.

News Release

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 BCSC’s online complaint form.

InvestRight.org is the British Columbia Securities Commission’s investor education website. Subscribe to receive email updates from BCSC InvestRight.

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The Enforcement Roundup is a monthly summary of enforcement decisions in British Columbia taken by securities regulators.