BCSC Panel Fines And Permanently Bans Two Directors Of B.C. Company For Selling Securities Without Being Registered
VANCOUVER, Jan. 9, 2013 /CNW/ - A British Columbia Securities Commission panel has fined and permanently banned two directors of a B.C. company who breached securities laws by selling securities without being registered.
In August 2012, a commission panel found that between July 2006 and January 2009, Ingram Jeffrey Eshun, Maisie (aka Maizie) Smith, and JV Raleigh Superior Holdings Inc. traded and distributed securities without complying with the registration and prospectus requirements of B.C.'s securities laws.
The panel found that the respondents illegally entered into loan agreements with 81 investors, raising approximately $5.7 million. Under the loan agreements, JV Raleigh was to borrow money from investors to purchase "consumer secured notes receivable", which JV Raleigh described as "a form of factoring" with typically "high yields." There is no evidence that the company used any of the funds for this purpose.
In its sanctions decision, the panel noted that, "the respondents raised $5.7 million and produced no records to show how it was spent", and suggested that "it appears that investors' funds were withdrawn from JV Raleigh and given to companies of which Eshun and Smith were directors and officers."Approximately $4 million was transferred out of JV Raleigh's accounts, including:
- $1.9 million to Trem DY Group Inc, of which Eshun is president and a director
- $1.5 million to DSC Lifestyle Services, of which Eshun is president and a director
- $370,000 to 0747940 BC Ltd, of which Smith is sole director (the payments included those related to shareholder loans and management fees)
- $234,426 to Siboco Marketing Inc, of which Eshun and Smith are sole directors.
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