A Langley resident, their Ontario business partner and the company they owned together have been charged with violating B.C. securities laws by raising $5.7 million from stock market investors without being properly registered.
The British Columbia Securities Commission (BCSC) said Maisie Smith (also known as Maizie Smith) of Langley and Ingram Jeffrey Eshun of Ontario each owned 50 per cent of JV Raleigh Superior Holdings Inc. a B.C. based company.
This week, the commission issued a notice of hearing alleging the company and its two directors breached securities laws by selling securities without being registered.
The notice alleges JV Raleigh entered into loan agreements that raised approximately $5.7 million from numerous investors between July 2006 and January 2009.
Under the loan agreements, the BCSC said, JV Raleigh was to borrow money from investors to purchase “consumer secured notes receivable”, which the firm described as “a form of factoring” with typically “high yields.”
It also promised to provide investors a monthly “return of capital” payment, and return the balance of the investment, plus interest, at a later date.
According to the BCSC, Smith met with investors, assisted them in entering the loan agreements, signed the loan agreements on behalf of JV Raleigh, and she opened B.C. bank accounts where investor funds were deposited. Eshun opened the bank accounts with Smith and was an authorized signatory.
According to the commission, the company and its two principals “traded and distributed securities” without ever being registered urned the provincial securities Act.
A hearing into the unproven allegations has been set before a panel of commissioners on November 14.
The BCSC is the independent provincial government agency responsible for regulating trading in securities within the province.
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