BCSC alleges that Lower Mainland residents and their companies acted contrary to public interest
Vancouver –The British Columbia Securities Commission (BCSC) is alleging that four Lower Mainland residents and six B.C. companies connected to them participated in a $50 million scheme that was contrary to the public interest.
In an Amended Notice of Hearing, the BCSC also alleges that some of them committed insider trading and one of them failed to file reports required by securities laws.
The respondents are West Vancouver residents Justin Edgar Liu and Anthony Kevin Jackson, North Vancouver resident Cameron Robert Paddock and Vancouver resident Robert John Lawrence, plus six companies where they acted as directors:
- Liu: Lukor Capital Corp. and Asiatic Management Consultants Ltd.
- Jackson: BridgeMark Financial Corp. and Jackson & Company Professional Corp.
- Paddock: Rockshore Advisors Ltd.
- Lawrence: Tavistock Capital Corp.
Between February and August 2018, the respondents allegedly took part in a scheme involving nine issuers that raised $50.8 million through 12 private placements. The issuers kept only a small portion of those funds. They paid most of the remaining funds to consultants as prepaid consultant fees, despite the fact that little or no consulting work was done to warrant those fees.
Some of the consultants purchased shares of the issuers through a consultant exemption, so as a result, they could sell them immediately without a hold period.
The BCSC alleges that by participating in this scheme, Liu, Lukor, Asiatic, Jackson, BridgeMark, Jackson & Company, Paddock, Rockshore, Lawrence and Tavistock acted contrary to the public interest.
In addition, Liu, Jackson and Paddock bought or sold their shares with the knowledge that the issuers kept only a small portion of the funds they raised, a material fact or change that wasn’t disclosed to the public. By doing so, the BCSC alleges that they committed insider trading. The BCSC also alleges that four respondent companies – Lukor, BridgeMark, Tavistock and Rockshore – did so as well.
The BCSC also alleges that Liu did not file any insider reports for buying or selling shares of two issuers as required by the Securities Act and National Instrument 55-104, Insider Reporting Requirements and Exemptions.
The BCSC’s allegations have not been proven. The commission will schedule a hearing date in July 14, 2021.
The BCSC’s Executive Director will issue Notices of Discontinuance against parties who were named in the November 26, 2018 Notice of Hearing who are not included in the Amended Notice of Hearing. However, the Executive Director may recommence proceedings against those parties in the future for conduct described in the November 2018 Notice of Hearing.
By May 28, 2021 the Executive Director will notify those parties against whom proceedings may be recommenced. Parties notified may wish to take steps, such as preserving evidence, to assist them with responding to allegations. If a party has not been notified by that date, then the Executive Director has no intention of recommencing proceedings against the party for conduct described in the November 2018 Notice of Hearing.
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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