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

B.C. government invests $7.5 million through Creative BC to help struggling musicians

Bob D’Eith, MLA for Maple Ridge-Mission, led industry consultations on supports during the pandemic

Fort Gallery re-opens part time to public with exhibition of artist Richard Bond’s work

Fraser Prospect continues Fraser River themed project that the gallery began in January

Langley beekeepers on alert for giant honeybee-murdering hornets recently sighted

Aldergrove beekeeper Bryn Jones ‘concerned’ after South Langley giant Asian hornet sighting

McLeod Athletic Park still closed as $5 million upgrades near completion

Park will host National Track and Field Championships and BC High School Championships

Beatniks Bistro donates $4,000 to Langley School District Foundation

Executive director Susan Cairns said $32,500 is spent every week to help feed Langley families

B.C. records four new COVID-19 cases, Abbotsford hospital outbreak cleared

Four senior home outbreaks also declared over, eight still active

Facing changes together: Your community, your journalists

Thanks for helping the Aldergrove Star to continue its mission to provide trusted local news

RCMP, coroner investigate murder-suicide on Salt Spring Island

Two dead, police say there is no risk to the public

About 30% of B.C. students return to schools as in-class teaching restarts amid pandemic

Education minister noted that in-class instruction remains optional

Trudeau avoids questions about anti-racism protesters dispersed for Trump photo-op

Prime minister says racism is an issue Canadians must tackle at home, too

B.C.’s Law Enforcement Torch Run for Special Olympics goes virtual

The annual event partnering RCMP with Special Olympians is dramatically altered by COVID-19

Bateman program encourages people to sketch outside, connect with nature

#MyNatureSketch initiative encourages Canadians to become ‘bright-eyed three year olds’

Be cautious expanding COVID-19 bubble, Dr. Bonnie Henry tells B.C.

Senior homes stay off-limits as schools, businesses reopen

Most Read