News Release

Vancouver – A Vancouver resident has pleaded guilty to withdrawing funds from a bank account that had been frozen by the BC Securities Commission (BCSC).

Scott Thomas Low, 75, was sentenced December 19 in Vancouver Provincial Court after pleading guilty to failing to comply with a decision made under the Securities Act, which is an offence under the Act. In addition to the 90 day jail term, the Court ordered Low to pay the BCSC $504,095 representing the amount he took from the bank account.

As part of his sentence, Low must also complete 60 hours of community work service and is subject to 12 months of probation.

In 2016, during an administrative investigation, the BCSC froze various bank accounts associated with the FS Corporate Group, including accounts held by 3i Capital ClearPath Limited Partnership and FS Financial Strategies Services Inc.

Freeze orders, now called preservation orders, prevent a person from transferring property, which could include money, physical property and investments. This enables it to be used to pay any financial sanctions imposed by a BCSC panel, including returning funds to victims.

Low, a co-founder and a director or de facto director of the FS Corporate Group, acknowledged at the time of his plea that he had received the freeze order prior to withdrawing the funds from the bank.

Low also admitted that, in 2018, he went to a branch of the bank, met with an employee there and withdrew $504,095 from three frozen corporate accounts. Low provided the bank drafts to a B.C. lawyer, who was defence counsel for the FS Corporate Group at the time. The lawyer deposited the bank drafts to his trust account, and the proceeds were subsequently used to pay for expenses on behalf of the FS Corporate Group.

In 2020, a BCSC panel found that Low, Aik Guan “Frankie” Lim and the FS Corporate Group committed misconduct. It ordered Low to resign as director or officer of any issuer or registrant, permanently banned him from the investment market and imposed a $2 million-dollar administrative penalty. Low has not paid any portion of that penalty.

When the BCSC demanded that the bank hand over the money in the frozen accounts, the BCSC discovered three of the accounts were depleted, with one account holding only $314 and two others empty, leading the BCSC’s Criminal Investigations Branch to launch an investigation.

About the B.C. Securities Commission (www.bcsc.bc.ca)

The B.C. Securities Commission, an independent provincial government agency, strives to make the investment market benefit the public. We set rules, monitor compliance by industry, take action against misconduct, and provide guidance to investors and industry. As guardians of B.C.’s investment market, we’re committed to maintaining a market that is honest, fair, competitive and dynamic, enabling British Columbians to thrive.

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