Court approves distribution of money to Bossteam investors
Vancouver - The Supreme Court of British Columbia has approved the distribution plan proposed by the Receiver appointed in the Bossteam matter. As detailed in the First Report to Court, the Receiver, Grant Thornton Limited, will distribute approximately US $3.5 million to 451 investors.
The Court also granted the British Columbia Securities Commission's (BCSC) application to pay interest to investors and to assess claims that were filed after the filing deadline. In addition to the amount of their allowed claim, the Receiver will pay investors five per cent interest from April 30, 2012 onwards.
"The BCSC always looks for opportunities to return money to victims of securities misconduct so it was important for us to apply to have a receiver appointed to run a claims process in this complex matter," said Doug Muir, Director, Enforcement, BCSC. "Having now obtained the Court's approval, the Receiver can return a substantial amount of money to many investors who suffered losses because of the misconduct in this case."
During its investigation of Bossteam E-Commerce Inc., Yan Zhu (a.k.a. Rachel Zhu), and Guan Qiang Zhang, the BCSC froze more than $10 million held in several bank accounts. The BCSC also registered a charge on land Zhu owned and collected approximately $123,000 from the sale of that land.
On August 8, 2014, a BCSC panel found that Bossteam, Zhu, and Zhang committed fraud, illegally distributed securities, and withheld information from BCSC investigators. On June 23, 2015, the panel issued sanctions against the respondents, including monetary orders and prohibitions against participating in the capital markets.
The BCSC applied to the Supreme Court of British Columbia on April 7, 2017, for an order appointing Grant Thornton Limited as a Receiver, to administer a claims process for the frozen money. Documents relating to the receivership process, including the Receiver's First Report, are available at www.bossteamclaims.com.
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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