News Release

Vancouver – A former director of a company has paid $40,000 to the B.C. Securities Commission (BCSC) and is banned from the investment market for 10 years for allowing the company to illegally distribute its shares and to trade in securities without being registered.

Qian (also known as Eve) Zhang was a director and the CEO of a company that represented itself as a financial technology, or “fintech,” firm that focused on developing proprietary trading software for portfolio managers.

Between 2018 and 2022, the company sold approximately $1.5 million worth of securities to 10 investors without a prospectus, a formal document providing details of an investment. Without a prospectus or an exemption from the prospectus requirement, the company illegally distributed securities; Zhang, as CEO and a director, authorized, permitted or acquiesced in those illegal distributions.

The company also raised nearly $30 million from investors between 2017 and 2022 by distributing its own preferred shares, common shares and bonds. The company deposited most of the funds in its trading accounts and used those funds to trade securities. The company was not registered under B.C.’s Securities Act, as required, to perform this activity. As the CEO and a director, Zhang authorized, permitted or acquiesced in this unregistered trading.

Zhang became a director of the company upon its incorporation in 2017 and its CEO in 2020. Although she continues to hold the title of CEO, she has not performed the duties of that office since resigning as director in 2023.

Zhang, who doesn’t have a history of securities misconduct, has expressed remorse for her actions and has provided “exemplary” cooperation in accordance with BC Notice 15-701, Credit for Cooperation in Enforcement Matters, with a BCSC investigation. She has also agreed to continue cooperating.

As part of her settlement agreement with the BCSC, Zhang must resign from any position as a director or officer of an issuer or registrant, and is prohibited for 10 years from:

• trading in or purchasing securities or exchange contracts (with some limited exceptions)
• becoming or acting as a director or officer of any issuer or registrant
• becoming or acting as a registrant or promoter
• advising or acting in a management or consultative capacity in connection with activities in the securities market, and
• engaging in promotional activities.

About the B.C. Securities Commission (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:
Brian Kladko
604-899-6713

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