2019/48
July 4, 2019
Vancouver
– A British Columbia Securities Commission (BCSC) panel has temporarily banned a
B.C. man and two companies from the securities market and has imposed a total
of $426,063 in monetary sanctions against them for facilitating trades in
securities without being registered to do so under the Securities Act.
Chien-Hua Liu (a.k.a. William Liu) and the two
companies he controlled, NuWealth Financial Group Inc. and CPFS Professional
Financial Services Inc., made referrals of investors to an issuer and an exempt
market dealer that ultimately led to 214 investments in securities totaling
approximately $6.5 million. The referrals involved people from B.C. and Hong
Kong between 2013 and 2016.
Liu and the companies steered customers to an exempt
market dealer who offered the investors securities of one of its affiliates,
and to an issuer involved in an early-stage real estate development project in
Fort McMurray.
Liu and his companies received large commissions for
the referrals which were tied to the purchase of specific securities.
Liu and NuWealth are prohibited for two years and CPFS
for one year from the following activities:
- Trading
in or purchasing securities or exchange contracts (with limited exceptions for
Liu’s personal account);
- Relying
on any exemptions of the Securities Act;
- Becoming
or acting as a director or officer of a registrant or promoter;
- Acting
in a management or consultative capacity in the securities market;
- Engaging
in investor relations activity.
Liu and NuWealth were ordered to pay a total of
$326,063, representing the amount in commissions they earned without being
registered. In addition, Liu, NuWealth and CPFS were ordered to pay a total of
$100,000 in administrative penalties ($40,000 each from Liu and NuWealth, and
$20,000 from CPFS).
In a dissenting decision on the $326,063 monetary
sanction related to the commissions paid to Liu and NuWealth, BCSC Vice Chair
Nigel Cave said he would not, in the public interest, have included that in the
orders.
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
Media
Contact:
Elise Palmer
604-899-6830
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
