B.C. fraudster who lured investors with promise to help homeless fined by securities regulator
A Vancouver woman whose company duped investors by promising big returns on real-estate deals that would house the homeless has been ordered to pay nearly $626,000 after the British Columbia Securities Commission deemed the operation a Ponzi scheme.
The commission found Cherie Evangeline White committed fraud, obstructed justice and illegally sold more than $1 million worth of shares in her company, KingdomInvestments2015 Inc., formerly known as KingdomRealty Inc. and Kingdom Investments Inc.
The company, which White controlled as the owner and chief executive, promised investors financial returns of between 10 and 30 per cent by "fixing and flipping" residential properties at a profit.
Many investors were lured by the prospect of helping to house people facing barriers such as addictions and homelessness, while others were attracted by White's profession of "shared spiritual values" and her "calculated use of faith-related" logos and language, according to the commission.
Instead, White and her company used investor funds to repay earlier investors, which the commission's tribunal determined was "consistent with a Ponzi scheme."
Other investor funds went to repaying a personal loan from White's stepfather, the panel found.
White created a false sense of urgency among investors, "going so far as to accompany one investor to their financial institution in order to facilitate payment … despite attempts by staff at such institution to warn such investor," the three-member panel wrote in its decision on Friday.
All told, White's investors incurred $776,000 in losses as a result of the fraud and the illegal distribution of more than $1.18 million in shares in her company.
She also obstructed justice when she failed to provide documents and information demanded by securities commission staff during a compelled interview, the tribunal ruled.
White and her company "did not co-operate fully in the enforcement process, have shown little to no remorse for their actions or the damages caused by them, and have failed to demonstrate any understanding of their misconduct or its impact," according to the ruling.
In addition to the $625,771 in penalties and reimbursements the commission ordered White to pay, she was also permanently banned from participating in B.C.'s investment market, except as an investor.
Kingdom was likewise permanently prohibited from trading its shares or engaging in any promotional activity.
CTVNews.ca Top Stories
BREAKING 4 dead, including infant, in wrong-way crash involving police on Ontario's Highway 401
A wrong-way crash on Highway 401 in Whitby, Ont. last night has left four people dead, including an infant, Ontario’s police watchdog says.
BREAKING Judge holds Trump in contempt, fines him US$9,000 and raises threat of jail in hush money trial
Donald Trump was held in contempt of court Tuesday and fined US$9,000 for repeatedly violating a gag order that barred him from making public statements about witnesses, jurors and some others connected to his New York hush money case. If he does it again, the judge warned, he could be jailed.
McGill requests 'police assistance' over pro-Palestinian encampment
McGill University says it has 'requested police assistance' about the pro-Palestinian encampment on its lower field.
New cancer treatment approved, but not everyone thinks it's what's best for patients
A new cancer treatment recently approved in Canada promises to cut treatment time down to just minutes, but experts have differing opinions on whether it's what's best for patients.
Air Canada walks back new seat selection policy change after backlash
Air Canada has paused a new seat selection fee for travellers booked on the lowest fares just days after implementing it.
Canadian economy loses steam after strong start to year, grows 0.2% in February
Canada's GDP rose 0.2 per cent in February, driven by a rebound in transportation and warehousing, which saw the largest recorded month-to-month rise in over a year at 1.4 per cent.
Canada's new dental program offering hope of free care to millions but many dentists aren't signed up
A new Canadian dental care program is offering the hope of free care to millions, but while 1.7 million people have signed up for the plan, only about 5,000 dentists have done the same.
Police searching for 'armed man' in Dartmouth, N.S., residents asked to shelter in place
Residents in the area of Gaston Road in Dartmouth, N.S., are being asked to shelter in place as police search for an armed suspect.
Province boots mayor and council in small northern Ont. town out of office
An ongoing municipal strike, court battles and revolt by half of council has prompted the province to oust the mayor and council in Black River-Matheson.