The British Columbia Securities Commission (BCSC) announced it is returning $2.1 million to investors who were defrauded in a real estate investment scheme that drained $33 million from its victims.
In 2016, the BCSC found sisters Siu Mui “Debbie” Wong and Siu Kon “Bonnie” Soo misappropriated $1.2 million of the investors’ subscription proceeds. Wong and Soo were accused of inflating the purchase price of a property and lying about it to investors while using mortgage proceeds for purposes not related to the property’s development. They also illegally distributed securities by selling shares without a prospectus and withheld information about potential delays in the property’s development from one investor.
The BCSC permanently banned Wong and Soo from various market activities and levied $22 million in financial sanctions against them.
On June 26, the British Columbia Supreme Court approved an application by the court-appointed receiver, MNP Ltd, to distribute money to 92 investors who submitted a claim. Since the funds recovered were insufficient to pay the investors’ claims in full, each investor will receive a pro-rated share. The approved claims total about $12.6 million.
“The receiver went to great lengths to gather assets for the benefit of victims of this devastating fraud,” said Doug Muir, the BCSC’s director of enforcement. “This case highlights the importance of using our powers under the Securities Act to enforce our financial orders and get money back to victims of investment fraud.”
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