BCSC Panel Issues Lifetime Ban Against Woman for Fraud
(firmenpresse) - VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 02/19/16 -- A British Columbia Securities Commission (BCSC) panel has fined and permanently banned Doris Elizabeth Nelson from the province's capital markets for fraud, illegally distributing securities, and lying to a commission investigator.
Nelson operated a payday loan business through a group of companies (represented and promoted collectively as the Little Loan Shoppe) that was, in actuality, a Ponzi scheme. The panel found that Nelson perpetrated fraud on at least 121 British Columbia investors, who invested at least $19 million in multiple transactions. The panel also found that Nelson distributed promissory notes in contravention of securities laws concerning prospectus requirements to 47 investors who invested a total of CDN $3,074,900 and USD $73,000.
Nelson financed the growth of her business by raising funds from investors in B.C. and the U.S., and used existing investors to recruit new investors, paying these recruiters on a commission basis. In return for investors' money, she had her companies issue promissory notes. Describing the seriousness of Nelson's conduct, the panel wrote:
The respondent carried out a multi-million dollar fraud that was international in scope. Her payday/short-term loan business was the front for a widespread Ponzi scheme that resulted in at least 121 British Columbia investors making investments in the business of at least $19 million, of which approximately $18.5 million remains outstanding.
Nelson was also found to have made false statements to the commission by producing a false affidavit in response to an order to provide information and records on one of her company's investors.
The panel ordered that Nelson pay to the commission $18.5 million, the amount determined to be the difference between the monies deposited by the investors pursuant to the fraud, and the monies paid out to them. The panel also ordered that Nelson pay an administrative penalty of $18.5.
Nelson must resign any position she holds as a director or officer of any issuer or registrant, and she is permanently prohibited from becoming or acting as a director or officer of any issuer or registrant, trading or purchasing securities or exchange contracts, acting as a registrant or promoter, engaging in investor relations activities, and acting in a management or consultative capacity in connection with the securities market.
You may view the sanctions decision on our website () by typing Doris Elizabeth Nelson, or 2016 BCSECCOM 50 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:
Learn how to protect yourself and become a more informed investor at .
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Datum: 19.02.2016 - 20:00 Uhr
Sprache: Deutsch
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VANCOUVER, BRITISH COLUMBIA
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Associations
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