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
Robert Pickton stabbed with toothbrush and broken broom handle: victim's family
The family of one of Robert Pickton's victims says the convicted serial killer suffered an incredibly violent death at the hands of another inmate.
'We will go with the majority': Liberals slammed by opposition over proposal to delay next election
The federal Liberal government learned Friday it might have to retreat on a proposal within its electoral reform legislation to delay the next vote by one week, after all opposition parties came out to say they can't support it.
Oilers beat Stars, one win away from Stanley Cup berth
Ryan Nugent-Hopkins scored two power-play goals as Edmonton smothered the Dallas Stars 3-1 to take a 3-2 lead in the NHL's Western Conference final on Friday.
Is carbon pricing a politically feasible climate policy? Research says maybe not
Research suggests the Liberals may be fighting a losing battle, and some experts are urging policymakers to look for alternative policies to lower emissions, warning the threat of climate change is too dire to delay action.
Ex-husband charged with murder in death of Lumby, B.C., woman
The ex-husband of Tatjana Stefanski – the woman whose disappearance and death set the small town of Lumby, B.C., on edge last month – has been charged with her murder.
Republicans join Trump's attacks on justice system and campaign of vengeance after guilty verdict
Embracing Donald Trump's strategy of blaming the U.S. justice system after his historic guilty verdict, Republicans in Congress are fervently enlisting themselves in his campaign of vengeance and political retribution in the GOP bid to reclaim the White House.
U.S. defense secretary says war with China neither imminent nor unavoidable, stressing need for talks
United States Secretary of Defense Lloyd Austin told a gathering of top security officials Saturday that war with China was neither imminent nor unavoidable, despite rapidly escalating tensions in the Asia-Pacific region, stressing the importance of renewed dialogue between him and his Chinese counterpart in avoiding "miscalculations and misunderstandings."
U.K. ambassador to Mexico out after video allegedly shows him pointing a rifle at a colleague
The U.K.’s ambassador to Mexico has left his post after a video was posted on social media that purportedly shows him pointing an assault rifle at an embassy employee.
Baby dead after being delivered via emergency C-section to woman who was in police custody
A newborn is dead after being delivered via emergency C-section to a woman in police custody.