William Wade Furman

Findings

I.          Introduction

1. This is the liability portion of a hearing under sections 161(1) and 162 of the Securities Act, RSBC 1996, c. 418.
   
   
2. On March 12, 2018, the executive director issued a notice of hearing against the respondent (2018 BCSECCOM 644) alleging that the respondent committed fraud contrary to section 57(b) of the Act when he raised approximately $452,000 from investors and:
   
   (i) falsely claimed that he was a successful, licensed day-trader who could generate high returns from that activity;
   
   (ii) promised investors that he would invest their funds in his day-trading activities but, instead, used a portion of the funds for purposes unrelated to that activity; and
   
   (iii) provided investors with fabricated monthly reports and forged account statements.
   
   
3. The number of alleged contraventions of section 57(b) by the respondent is not clear in the notice of hearing.  However, during the hearing, the executive director clarified that he was alleging 12 contraventions of section 57(b) by the respondent for total proceeds of at least $452,000.
   
   
4. During the hearing, the executive director called six witnesses, a Commission investigator and five investors, tendered documentary evidence and made written and oral submissions.
   
   
5. We find that the respondent was provided the notice of hearing pursuant to section 180 of the Act.  However, the respondent did not attend the hearing in person nor was he represented by counsel at the hearing. He did not tender any evidence or provide any written or oral submissions, nor did he attend the hearing of the oral submissions on liability.
   
   
6. Following the hearing of the oral submissions on liability, the executive director provided further written submissions on a question that arose during the hearing of oral submissions – what are the ramifications of a deceit made to an investor after an investment has already been made?  These further written submissions were unsolicited by the panel.  A copy of these submissions were mailed to the last known address of the respondent and he was provided with an opportunity to reply.  No further submissions were received from the respondent.
   
   
7. These are our findings with respect to the liability of the respondent relating to the allegations in the notice of hearing.

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