News Release

BCSC panel finds that former registrant committed fraud

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Vancouver - A British Columbia Securities Commission (BCSC) panel has found that Lynne Rae Nickford (a.k.a. Lynne Rae Zlotnik) perpetrated fraud on 13 investors.

Nickford had previously been registered as a scholarship fund salesperson from 1991 to 1993 and as a mutual fund salesperson from 1998 to 2008, but was not registered under the Securities Act during the relevant period. She was also the sole proprietor of Lynne Zlotnik Wealth Management (LZWM), and licensed as a life and accident and sickness insurance agent during the relevant period.

The panel found that in 2009 and 2010, Nickford convinced 13 investors to loan money to or invest in LZWM, and told the investors their funds would be used for LZWM's business operations and growth. In most instances, Nickford offered investors rates of return ranging generally from 12 to 16 per cent, and issued either promissory notes or "private investment" documents.

The panel found that Nickford spent over $318,000 of the investors' money on personal expenses unrelated to her business.

In its decision, the panel stated, "The investors' funds were put at risk when all the funds were not used for the purposes of the respondent's business, LZWM, as intended.  With the subsequent bankruptcy of the respondent and her business, the investors' funds were lost."

The panel directed the parties to make submissions on sanctions according to the schedule set out in the findings.

You may view the findings decision on our website, www.bcsc.bc.ca, by typing Lynne Rae Nickford, Lynne Rae Zlotnik, or 2017 BCSECCOM 272 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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Alison Walker

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