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News Release

Securities Commission Issues Shum Decision

  • Date:

    1997-12-12

  • Number:

    97/40

Released: December 4, 1997  Contact: Barbara Barry  899-6500 or (BC only) 1-800-373-6393

Vancouver - The British Columbia Securities Commission has announced significant penalties against David Yan Sum Shum following a November 17, 1997 hearing into his conduct as a mutual fund salesperson. A 20 year trading ban was imposed against Shum for his role in defrauding an elderly client of her mutual fund investments. Shum was also banned from being a director or officer of any public company for 20 years and ordered to pay an administrative penalty of $20,000.

Over a two year period, Shum systematically defrauded an elderly client of $130,000 in mutual fund investments and misappropriated the cash proceeds for his own benefit. Shum took advantage of his clients’ trusting nature and the friendship he had established with her. The Commission found that Shum’s breach of fiduciary duty was of the most egregious kind.

The Commission, in making the regulatory orders against Shum said:

We have also taken into account the fact that Shum has acknowledged his misconduct by pleading guilty and that he has taken steps to repay the money he stole…. We also have considered his submission with respect to his ability to pay an administrative penalty.

However, in considering what orders ought to be made against Shum our paramount consideration must be the public interest. The regulatory sanction we impose upon Shum must serve to deter not only him but other registrants who find themselves in similar circumstances. The orders we impose are intended to reflect the seriousness of Shum’s misconduct.
The British Columbia Securities Commission is the independent provincial agency responsible for regulating trading in securities and exchange contracts.