The British Columbia Financial Services Authority (BCFSA) has disciplined a Vancouver real estate broker and her personal company for professional misconduct involving an investor client.
According to BCFCA, between 2018 and 2020 Wendy Mills approached a former client with an opportunity to purchase, renovate, and sell a property together. Mills received $60,000 from the client under this agreement and promised a $20,000 return on investment for a total of $80,000.
Although Mills made some initial inquiries about the property, she did not purchase it due to personal and family stresses. However, she falsely informed to her client that she had purchased, renovated, and sold the property for a profit. She paid $20,000 to the client in the summer and fall of 2018.
But when the client asked for the $60,000 principal back, Mills proposed reinvesting that sum into the purchase and renovation a second property with another $20,000 in promised profit. Mills repeated her initial fraud – but after the client filed a lawsuit when repayment was not forthcoming, Mills paid her client back $70,500 of the $80,000 promised – composed of the $60,000 initial investment and $20,000 in promised profit on the second property.
Mills did not inform her brokerage of the real estate services she was providing and never delivered the client’s funds to her brokerage, as required.
BCFSA announced the license cancelation for both Mills and her Wendy Mills Personal Real Estate Corporation. Mills and her personal company were jointly and severally fined a $110,000 discipline penalty and were ordered to pay $5,000 in enforcement expenses.
“BCFSA holds real estate licensees to high standards and does not tolerate dishonesty and deception, even where licensees are tempted or pressured by personal circumstances,” said the agency in a press statement. “The disciplinary measures reflect the licensee’s failure to meet core responsibilities.”
