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 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

Photo: Andy Bronson
KSCL to build Castlegar housing complex

The development will include supportive and affordable housing units

With new Provincial Health Orders, area sports teams will suspend all travel including the Trail Smoke Eaters and Trail minor hockey rep teams and some house teams. Photo: Jim Bailey.
New COVID regs suspend junior and minor hockey rep play

All West Kootenay travelling hockey teams have been grounded until Dec. 7

Some of the items available at the online auction.
Castlegar Rotary fundraising auction online

Great opportunity to shop local from home for your holiday gift needs

Nav Canada is considering closing its station at the West Kootenay Regional Airport. Photo: Betsy Kline
LETTER: Pilots encourage Nav Canada to keep Castlegar station open

“We are writing this letter as concerned users of the Castlegar airport”

Kyle Charles poses for a photo in Edmonton on Friday, Nov. 20, 2020. Marvel Entertainment, the biggest comic book publisher in the world, hired the 34-year-old First Nations illustrator as one of the artists involved in Marvel Voice: Indigenous Voices #1 in August. THE CANADIAN PRESS/Jason Franson
VIDEO: Indigenous illustrator of new Marvel comic hopes Aboriginal women feel inspired

Kyle Charles says Indigenous women around the world have reached out

Join Black Press Media and Do Some Good
Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
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

B.C. Liberal MLA Shirley Bond questions NDP government ministers in the B.C. legislature, Feb. 19, 2020. (Hansard TV)
Cabinet veteran Shirley Bond chosen interim leader of B.C. Liberals

28-member opposition prepares for December legislature session

Motorists wait to enter a Fraser Health COVID-19 testing facility, in Surrey, B.C., on Monday, November 9, 2020. THE CANADIAN PRESS/Darryl Dyck
COVID-19: What do rising positivity rates mean for B.C.? It’s not entirely clear

Coronavirus cases are on the rise but the province has not unveiled clear thresholds for further measures

A rider carves a path on Yanks Peak Saturday, Nov. 21. Two men from Prince George went missing on the mountain the next day. One of them, Colin Jalbert, made it back after digging out his sled from four feet under the snow. The other, Mike Harbak, is still missing. Local search and rescue teams went out looking Monday, Nov. 23. (Sam Fait Photo)
‘I could still be the one out there’: Snowmobiler rescued, 1 missing on northern B.C. mountain

As Quesnel search and rescue teams search for the remaining rider, Colin Jalbert is resting at home

More than 70 anglers participated in the bar-fishing demonstration fishery on Sept. 9, 2020 on the Fraser River near Chilliwack. DFO officers ticketed six people and seized four rods. A court date is set for Dec. 1, 2020. (Jennifer Feinberg/ Chilliwack Progress file)
Anglers ticketed in Fraser River demonstration fishery heading to court

Sportfishing groups started a GoFundMe with almost $20K so far for legal defence of six anglers

Pictured is the Cranbrook gravel pit, located between two graveyards near the public works yard. This is where two lost kids were located by a Salvador Ready Mix driver on Thursday, November 19, 2020. (Corey Bullock/Cranbrook Townsman file)
Two lost Cranbrook kids find their way home thanks to Salvador Ready Mix driver

The driver found the children wandering near the gravel pits in Cranbrook

Care home staff are diligent about wearing personal protective equipment when they are in contact with residents, but less so when they interact with other staff members, B.C. Seniors Advocate says. THE CANADIAN PRESS/Chris Young
More COVID-19 testing needed for senior home staff, B.C.’s advocate says

Employees mingling spotted as virus conductor in many workplaces

Most Read