BCSC alleges $47 million investment fraud by insurance group’s top officers (ENGLISH and CHINESE)

2018/85
November 6, 2018

Vancouver - The British Columbia Securities Commission (BCSC) has issued a notice of hearing alleging that three leaders of a once fast-growing insurance group committed fraud by getting hundreds of people to purchase unsecured loan agreements.

The BCSC alleges that Aik Guan "Frankie" Lim and Scott Thomas Low, the directors and founders of FS Financial Strategies Inc. and related companies in the FS insurance group, dishonestly raised over $47 million between 2012 and 2017 by failing to disclose to investors that the company wasn't profitable, its financial situation was deteriorating, and it survived by raising money from investors to cover its expenses.

The notice says that Darrell Wayne Wiebe, the company's general manager, was aware of the FS insurance group's true financial condition and contributed to the fraud by routinely advising Lim and Low how much the company needed to raise from investors to stay afloat.

The BCSC says investors were promised interest payments of 10 per cent to 12 per cent, payable monthly. Lim and Low "created an illusion of profitability" by opening new offices in rapid succession; donating money to charities; telling customers that they planned to take the insurance group public; and hosting parties for clients and staff at expensive hotels.

The notice of hearing names six additional people - Chun Ying "Jim" Pan, Chung-Sheng "Johnson" Kao, George Lay, Gagan Deep Bachra, Chi Kay "Dixon" Wong and Meng Cher "Philip" Tsai - who were appointed by Lim and Low as directors of related companies in the FS insurance group that also sold the unsecured loans. The related companies are alleged to have sold securities without a prospectus and without being registered to do so.

The BCSC alleges that Lim and Low, in addition to committing fraud, selling securities without a prospectus and selling securities without being registered, also violated the B.C. Securities Act by continuing to trade and sell securities after making a legal promise to the BCSC's executive director, in 2014, that they would stop.

A hearing on the matter will be held Dec. 4, 2018 at 9:00 a.m., which all of the individuals named in the notice, or their counsel, have been invited to attend.

The notice of hearing can be viewed on the BCSC's website, www.bcsc.bc.ca, by typing the names of any of the respondents or 2018 BCSECCOM 330 in the search box. Information about disciplinary proceedings can be found in the Enforcement section of the BCSC website.

Please visit the Canadian Securities Administrators' (CSA) Disciplined List for information relating to persons and companies disciplined by provincial securities regulators, the Investment Industry Regulatory Organization of Canada (IIROC) and the Mutual Fund Dealers Association of Canada (MFDA).

About the British Columbia Securities Commission ( www.bcsc.bc.ca )

The British Columbia Securities Commission is the independent provincial government agency responsible for regulating capital markets in British Columbia through the administration of the Securities Act. Our mission is to protect and promote the public interest by fostering: 

  • A securities market that is fair and warrants public confidence
  • A dynamic and competitive securities industry that provides investment opportunities and access to capital

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Media Contact:
Brian Kladko
604-899-6713

Public inquiries:
604-899-6854 or 1-800-373-6393 (toll free)
inquiries@bcsc.bc.ca

Learn how to protect yourself and become a more informed investor at www.investright.org

发布于2018年11月6日

NR 18-85                                                                         

BC省证监会指称保险集团高官投资诈骗$4700万

温哥华 - BC省证监会(BCSC)发布了一份聆讯通知,指称一度快速发展的一家保险集团的三位领导人通过让数百人购买无担保贷款协议而施行诈骗。

BC省证监会称FS Financial Strategies Inc.及FS保险集团相关公司的创始董事Aik Guan Frankie Lim及Scott Thomas Low在2012年至2017年间以不诚实的手段筹集了$4700多万,期间未向投资者披露该公司没有盈利,其财务状况正在恶化,并通过从投资者那里筹集资金以支付其开支而维持运营。

该通知称,公司总经理Darrell Wayne Wiebe知晓FS保险集团的真实财务状况,并通过定期向Lim和Low通报公司维持运营需向投资者筹集的资金金额,参与诈骗。

BC省证监会表示,上述公司向投资者承诺支付10%至12%的利息,按月支付。Lim和Low通过快速连续地开设新办事处、向慈善机构捐款、告诉客户他们计划将保险集团上市并在昂贵的酒店为客户和员工举办派对,来"制造盈利的假象"。

聆讯通知还提名了另外6个人 -  Chun Ying "Jim" Pan、Chung-Sheng "Johnson" Kao、George Lay、Gagan Deep Bachra、Chi Kay "Dixon" Wong和Meng Cher "Philip" Tsai  - 他们由Lim任命为FS保险集团相关公司的总监,这些公司也出售无抵押贷款。这些相关公司被指在没有招股说明书的情况下出售证券,而且也未注册证券出售。

BC省证监会指称,Lim和Low除了进行诈骗、在没有招股说明书的情况下出售证券、在未经注册的情况下出售证券之外,他们在2014年向BC省证监会执行总监做出停止出售证券的承诺后,仍继续交易和出售证券,这也违反了《BC省证券法》的规定。

有关此事件的聆讯将于2018年12月4日上午9:00举行,通知中指名的所有人士或其律师均已被邀请参加聆讯。

聆讯通知可在BC省证监会网站www.bcsc.bc.ca上查看 ,在搜索框中输入任何一个当事人的姓名或2018 BCSECCOM 330即可浏览。有关制裁诉讼的信息可在BC省证监会网站的执行部门找到。

有关受到省级证券监管机构、加拿大投资行业监管机构(IIROC)和加拿大互惠基金交易员协会(MFDA)制裁处分的个人和公司的信息,请浏览加拿大证券管理机构(CSA)的制裁处分名单

关于BC省证监会( www.bcsc.bc.ca

BC省证监会是独立的省级政府机构,通过执行《证券法》,负责对BC省的资本市场进行规管。我们的使命是保护和促进公共利益,力求扶持:

  • 公平的、保证公众信心的证券市场
  • 提供投资机会和资金渠道、充满活力和竞争力的证券行业

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媒体联系信息:

Brian Kladko
604-899-6713

公众查询:

604-899-6854或1-800-373-6393(免费长途电话)

inquiries@bcsc.bc.ca

浏览www.investright.org,了解如何保护自己并成为更明智的投资者。 


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