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
B.C. serial killer Robert Pickton dead following prison attack
Convicted B.C. serial killer Robert Pickton, who preyed on women he lured from Vancouver's Downtown Eastside to his rural pig farm, has died.
'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.
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.
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.
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.
Jennifer Lopez cancels summer tour: 'I am completely heartsick and devastated'
Jennifer Lopez has cancelled her 2024 North American tour, representatives for Live Nation confirmed to The Associated Press.
This Calgary home has a giant tree in the middle, and it's for sale
There's a luxury 'tree home' for sale in Calgary.
DND moving 1,000 employees out of Ottawa office building due to safety concerns
The Department of National Defence is moving approximately 1,000 employees out of an office building in Ottawa's Lowertown neighbourhood, citing safety concerns for its employees.
Man convicted of killing Toronto cop in 1980 granted day parole
A man convicted of murdering a Toronto police officer more than four decades ago has been granted day parole for six months.