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
More than 115 cases of eye damage reported in Ontario after solar eclipse
More than 115 people who viewed the solar eclipse in Ontario earlier this month experienced eye damage after the event, according to eye doctors in the province.
Toxic testing standoff: Family leaves house over air quality
A Sherwood Park family says their new house is uninhabitable. The McNaughton's say they were forced to leave the house after living there for only a week because contaminants inside made it difficult to breathe.
Decoy bear used to catch man who illegally killed a grizzly, B.C. conservation officers say
A man has been handed a lengthy hunting ban and fined thousands of dollars for illegally killing a grizzly bear, B.C. conservation officers say.
B.C. seeks ban on public drug use, dialing back decriminalization
The B.C. NDP has asked the federal government to recriminalize public drug use, marking a major shift in the province's approach to addressing the deadly overdose crisis.
OPP responds to apparent video of officer supporting anti-Trudeau government protestors
The Ontario Provincial Police (OPP) says it's investigating an interaction between a uniformed officer and anti-Trudeau government protestors after a video circulated on social media.
An emergency slide falls off a Delta Air Lines plane, forcing pilots to return to JFK in New York
An emergency slide fell off a Delta Air Lines jetliner shortly after takeoff Friday from New York, and pilots who felt a vibration in the plane circled back to land safely at JFK Airport.
Sophie Gregoire Trudeau on navigating post-political life, co-parenting and freedom
Sophie Gregoire Trudeau says there is 'still so much love' between her and Prime Minister Justin Trudeau, as they navigate their post-separation relationship co-parenting their three children.
Last letters of pioneering climber who died on Everest reveal dark side of mountaineering
George Mallory is renowned for being one of the first British mountaineers to attempt to scale the dizzying heights of Mount Everest during the 1920s. Nearly a century later, newly digitized letters shed light on Mallory’s hopes and fears about ascending Everest.
Loud boom in Hamilton caused by propane tank, police say
A loud explosion was heard across Hamilton on Friday after a propane tank was accidentally destroyed and detonated at a local scrap metal yard, police say.