VANCOUVER, May 22, 2013 /CNW/ - The executive director of the British
Columbia Securities Commission has issued a notice of hearing alleging
that Siu Mui "Debbie" Wong, Siu Kon "Bonnie" Soo, and an Alberta
company co-founded by them committed fraud and illegally distributed
securities. Wong and Soo are sisters.
The notice alleges that in and around June 2007, Wong and Soo promoted
shares in a joint venture with Wheatland Industrial Park Inc., an
Alberta corporation co-founded by Wong and Soo that owns property in
Wheatland, Alberta. Wong and Soo were the sole directors of Wheatland
and residents of B.C. at all relevant times. The investment was
promoted primarily to B.C. residents, in spite of the fact that the
company has never filed a prospectus in B.C.
The notice states that the purpose of the joint venture was to develop
the Wheatland property into saleable, subdivided parcels of industrial
land that would result in profit to investors and Wheatland. The joint
venture authorized Wong and Soo to coordinate the development and
re-sale of the Wheatland Property, and they were entitled to 5% of net
profits for their efforts.
BCSC staff contend that at least 78 individuals and corporate entities
purchased shares in the joint venture at around $85,000 per share. For
approximately 25 of the purchasers (totaling $2.0 million in shares),
there was no applicable exemption to prospectus requirements available
The notice further alleges that Wong and Soo took joint venture money to
make at least $5.2 million in loans to themselves and their various
companies (these loans were subsequently paid back to Wheatland). They
used the loans for their own business endeavours unrelated to
Wheatland, and they made the loans without the knowledge or permission
Wong and Soo also transferred 33.5 shares in the joint venture, worth
approximately $2.8 million, without consideration to companies held by
their adult children. They did this without the knowledge or permission
of investors. In the notice, BCSC staff note that Wheatland is in
default of its mortgage obligations for parts of the Wheatland
property, and foreclosure proceedings have been commenced.
BCSC staff maintains that by misappropriating funds from the joint
venture and by transferring joint venture shares without consideration
to the benefit of their adult children, Wong and Soo perpetrated a
fraud against investors.
Wong and Soo have agreed to pay the money owing to Wheatland plus
interest by July 31, 2013.
These allegations have not been proven. Counsel for the executive
director will apply to set dates for a hearing into the allegations
before a panel of commissioners on June 25, 2013 at 9:00am.
The B.C. Securities Commission is the independent provincial government
agency responsible for regulating trading in securities within the
province. You may view the notice of hearing on our website www.bcsc.bc.ca by typing Wheatland Industrial Park Inc., Siu Mui "Debbie" Wong, Siu
Kon "Bonnie" Soo, or 2013 BCSECCOM 140 in the search box. Information
regarding disciplinary proceedings can be found in the Enforcement section of the BCSC website.
Please visit the Canadian Securities Administrators' Disciplined Persons List 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).
Learn how to protect yourself and become a more informed investor at www.investright.org
SOURCE: British Columbia Securities Commission
For further information:
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