West Vancouver man agrees to $950K fine, 10-year investing ban for financial misconduct
A West Vancouver man has paid $950,000 to B.C.'s securities regulator and agreed to a 10-year ban from participating in the investment market for his role in a scheme that was abusive to the market.
The scheme involved "private placements" – sales of shares to small groups of investors that don't take place on the open market – and prepaid consulting fees.
Justin Edgar Liu and two companies he controlled – Lukor Capital Corp., which dissolved in 2017, and Asiatic Management Consultants Ltd. – admitted in a settlement agreement with the B.C. Securities Commission this week that they participated in the scheme.
Liu and Lukor were "placees" for more than $5.6 million worth of shares in two companies, which were provided to them in three private placements, according to the BCSC.
They also received more than $600,000 worth of shares from other placees after two other private placements.
"In addition to obtaining private placement shares in their own names, the Liu respondents also paid $12,370,500 to other placees, who used the funds to purchase other private placement shares as part of the scheme," the settlement reads.
In all, the scheme involved nine issuers of securities making 12 private placements, from which they publicly announced total proceeds of more than $50.8 million, according to the agreement.
The nine companies only retained less than $7.9 million of that total, however, with the rest going to consultants such as Lukor, which had done little or no actual consulting work.
"One or more of the Liu respondents directly received consulting fees which collectively totaled $4,543,750 from all nine Issuers," the settlement reads. "One or more of the Liu respondents or other entities associated to Liu indirectly received additional amounts from other consultants."
The agreement notes that Liu and his companies' participation in the scheme constituted conduct that was abusive to the capital markets.
Under the settlement, Liu and his companies jointly agreed to pay $950,000 to the BCSC and to be banned from participating in the investment market for 10 years. There is an exception, however, that allows Liu to invest via his own account through a registered dealer or registrant, as long as he provides them with a copy of the BCSC's order against him first.
The BCSC said in a news release announcing the sanctions against Liu that he has already paid the $950,000 penalty.
CTVNews.ca Top Stories
'Oh my God, you're my brother': Man in his 70s discovers 6 unknown siblings
After receiving a DNA kit one Christmas from his son-in-law, Hugh McCormick soon discovered that he had six unknown siblings, with whom he shared the same birth parents.
No refund for travellers who cancelled flight already scrapped by airline: regulator
Four years on, the controversy over whether airlines owed refunds to passengers after cancelling hundreds of thousands of flights during the pandemic continues to simmer, aggravated by a sluggish, opaque complaints process.
Just how bad are ultraprocessed foods? Here are 5 things to know
Many foods fall under the category of ultraprocessed foods, depending on their exact ingredients. This type of food has been studied a lot lately, and the results aren’t great.
'My family doctor just fired me': Ontario patients frustrated with de-rostering
Dozens of Ontarians are expressing frustration in the province’s health-care system after their family doctors either dropped them as patients or threatened to after they sought urgent care elsewhere.
Rates of cancer declining in Canada, but more work needed to save lives: projections
A new study projecting declining rates of cancer cases and deaths in Canada demonstrates the success of prevention and early detection programs, but also highlights areas where more work is needed to save and prolong lives, researchers say.
DEVELOPING Trump trial arrives at a pivotal moment: Star witness Michael Cohen is poised to take the stand
The star prosecution witness in Donald Trump's hush money trial is set to take the stand Monday with testimony that could help shape the outcome of the first criminal case against an American president.
Canucks hold off Oilers for 4-3 win in Game 3
Brock Boeser had two goals and an assist, and the Vancouver Canucks hung on for a 4-3 win over the Edmonton Oilers in Game 3 of their second-round Stanley Cup playoff series.
Ottawa pizzeria places among top 20 deep-dish pizzas in the world at international competition
An Ottawa pizzeria is being recognized as one of the top 20 deep-dish pizzas in the world.
Man fatally 'slashed in the neck' in downtown Toronto, suspect outstanding
Police are searching for a male suspect after a man was “slashed in neck” on Sunday morning in downtown Toronto and died.