This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

BCSC Alleges That Woman Perpetrated Fraud And Made False Statements To The Commission

VANCOUVER, Jan. 21, 2013 /CNW/ - The executive director of the British Columbia Securities Commission has issued a notice of hearing alleging that a Canadian citizen who currently resides and is under house arrest in Colbert, Washington, perpetrated a fraud and made false statements to the commission.

The notice alleges that Doris Elizabeth Nelson operated a payday loan business that was, in actuality, a Ponzi scheme that raised $135.4 million from at least 800 investors in Canada and the United States. The notice states that over $69 million was raised from at least 355 B.C. investors.

Nelson ran her business through a group of companies that she directed and controlled, and which she represented and promoted collectively as the Little Loan Shoppe. She 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.

Nelson represented to investors, both directly and through her recruiters, that because her business was so profitable, she could afford promissory notes paying annual interest rates of 40% to 60%.  She also said that the investment was risk-free. In reality, her business was not profitable due to its high rate of customer loan defaults.

One of the companies that Nelson controlled and used to issue promissory notes was 0738126 B.C. Ltd. On July 11, 2008, commission investigators notified Nelson that 0738126's capital raising activities in B.C. were under investigation. The notice alleges that Nelson reacted by emailing investors, telling them that she planned to make false statements to the commission and coaching them to hide relevant information if contacted by the commission.

The commission ordered 0738126 to provide information and records regarding its investors.  In response, Nelson produced a false affidavit in which she misrepresented the number of Canadian investors and attached false evidence purporting to establish exemptions for those distributions that 0738126 had already made. Nelson also stated, correctly, that 0738126 had ceased distributing securities.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs