B.C. Securities Commission says FS Financial Strategies and six other companies in B.C., Alberta and Ontario have been ordered to pay $32.8 million for “making misrepresentations to hundreds of investors” as well as illegally selling securities and unregistered trading. (Black Press file)

B.C. securities panel orders companies, founders to pay $37 million in fines

FS Financial Strategies and six other companies in B.C., Alberta and Ontario ordered to pay $32.8 million

A group of companies and its founders have been fined nearly $37 million by a B.C. Securities Commission panel that says they misled investors, conducted unregistered trading and illegally sold securities.

The panel says it ordered FS Financial Strategies and six other companies in B.C., Alberta and Ontario to pay $32.8 million for “making misrepresentations to hundreds of investors” as well as illegally selling securities and unregistered trading.

It also ordered company founders Aik Guan (Frankie) Lim and Scott Thomas Low to pay $2 million each, and permanently banned them from B.C.’s investment markets.

The former general manager of the companies, Darrell Wayne Wiebe, has been ordered to pay $75,000 and is banned from B.C.’s investment markets for a decade.

The securities commission says in a news release that Lim, Low and the FS Group admitted to raising over $47 million from 389 investors without disclosing that the company wasn’t profitable and was covering its shortfalls by raising more money from investors.

The panel says in its decision that it’s unlikely the FS Group can repay investors, and after the commission issued a temporary order in 2017 against the companies, the Insurance Council of British Columbia suspended or terminated licences to sell insurance for the founders and the companies.

The commission also says Lim and Low sold $29 million in securities in violation of a 2014 legal commitment to the securities commission not to trade or distribute securities until one of its companies had filed the proper documents and refunded investor loans.

“The seriousness of the misconduct was magnified by the significant amount of money and large number of investors involved, and the duration of the misconduct,” the panel says in its ruling.

The commission’s news release says Lim, Low and the FS Group admitted to the misconduct in an agreed statement of facts filed last year. In a separate agreement, it says Wiebe admitted to going along with the conduct.

The agreements led to a hearing in February to determine the sanctions.

The Canadian Press

Like us on Facebook and follow us on Twitter.

Security

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Unofficial holidays: Here’s what people are celebrating for the week of Sept. 27 to Oct. 3

World Farm Animals Day, Drink Beer Day and Virus Appreciation Day are all coming up this week

Cannings: MPs working from home important during Covid

“Ottawa is a hot spot for the virus at present … “

Two new COVID-19 cases reported in Interior Health

The total number of Interior Health cases since the beginning of the pandemic is now at 522

Times reporter recalls John Turner’s return to Rossland home

“Mr. Turner treated my wife, Gerry, and I like we were long lost friends.” - Jim Swettenham

B.C. government to destroy old-growth caribou habitat

Letter from Wildsight Conservation Specialist Eddie Petryshen

QUIZ: Do you know what’s on TV?

Fall is normally the time when new television shows are released

A (virtual) walk around the world by 88-year-old B.C. man

George Doi says it’s simple: ‘I like walking’

End of CERB means uncertainty for some, new system for others

As of a week ago, the CERB had paid out $79.3 billion to 8.8 million people

Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Horgan, Wilkinson trade barbs over MSP premiums, health care at campaign stops

Horgan called a snap election for Oct. 24 earlier this week

PHOTOS: 2nd calf in a month confirmed among Southern Resident killer whale pod

Center for Whale Research said they will eagerly await to observe the calf to evaluate its health

2 British Columbians arrested, 3 at large in massive Alberta drug bust

Eight people are facing 33 charges in what police have dubbed Project Incumbent

Most Read