BCSC Panel Fines and Orders Permanent Bans Against Former Burnaby Residents for Fraud and Illegal Distributions
(firmenpresse) - VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 07/06/15 -- A British Columbia Securities Commission panel has fined and ordered bans against Yan Zhu (also known as Rachel Zhu) and Guan Qiang Zhang, two former residents of Burnaby, B.C. The panel also fined and permanently cease-traded Bossteam E-Commerce, the company co-founded by Zhu and Zhang.
In August 2014, a Commission panel found that Zhu, Zhang, and Bossteam committed numerous securities-related infractions, including fraud, illegally distributing securities, and withholding information from BCSC investigators and instructing their employees and investors to do the same.
Bossteam described itself on its websites, in documents, and in presentations as an online advertising business. A primary part of the business was its website with platforms, including one where advertisers could post links to their own webpages as advertising to be viewed by others. The panel found that Zhu, Zhang, and Bossteam committed fraud when they created the false impression that Bossteam members and well-known local and international businesses were paying Bossteam to advertise on its websites. This was untrue, as the majority of ads appearing on Bossteam's websites were associated with Bossteam's own accounts, and not to accounts for parties that had paid Bossteam to post their links.
Discussing the severity of Zhu and Zhang's misconduct, the panel wrote, "Their activities were at the most serious end of the range of misconduct under the Act, caused serious harm to investors and damaged the integrity of our capital markets."
Both Zhu and Zhang were ordered to pay a $14 million administrative penalty to the Commission, and to resign any position they hold as an officer of a director of an issuer or registrant. The panel ordered that Zhu and Zhang be permanently banned from trading in securities (with limited exceptions), purchasing securities or exchange contracts, and from becoming or acting as a director or officer of any issuer or registrant. They are also permanently prohibited from becoming or acting as a registrant or promoter, from engaging in investor relations activities, and from acting in a management or consultative capacity in connection with the securities market.
The panel also ordered the respondents to disgorge to the Commission the $14 million obtained as a result of their misconduct. Bossteam, Zhu, and Zhang are jointly and severally liable for these amounts. The securities of Bossteam have been permanently cease-traded.
You may view the sanctions decision on our website by typing Yan Zhu, Rachel Zhu, Guan Qiang-Zhang, Bossteam E-Commerce Inc., or 2015 BCSECCOM 264 in the search box. Information regarding disciplinary proceedings can be found in the of the BCSC website.
Please visit the Canadian Securities Administrators' for information relating to persons disciplined by provincial securities regulators, the Investment Industry Regulatory Organization of Canada (IIROC) and the Mutual Fund Dealers Association (MFDA).
About the British Columbia Securities Commission ()
The British Columbia Securities Commission is the independent provincial government agency responsible for regulating capital markets in British Columbia through the administration of the Securities Act. Our mission is to protect and promote the public interest by fostering:
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Datum: 06.07.2015 - 18:00 Uhr
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News-ID 404933
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VANCOUVER, BRITISH COLUMBIA
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