VANCOUVER, July 30, 2015 /CNW/ - The Executive Director of the British Columbia Securities Commission (BCSC) has issued a notice of hearing alleging that a B.C. man defrauded a volunteer at a seniors' centre.
The notice alleges that Tin Chao Alan Lau, a founder and the chair of the board of directors of a non-profit seniors' centre called Canadian Low Income Seniors Affordable Housing Society, persuaded a volunteer at the seniors' centre to invest $50,000 in the seniors' centre through him. The money had been given to the volunteer by his daughter to assist with his living expenses.
BCSC staff contends that Lau told the volunteer that if he invested $50,000 he would receive five per cent annual interest, payable monthly. The investor agreed to the investment based on Lau's assurances that he would earn a higher interest rate with the investment over the bank and that the investor could easily withdraw the money.
Lau instructed the investor to purchase a $50,000 bank draft payable to Lau, which he deposited into his personal bank account. Lau then proceeded to spend the the entirety of the volunteer's $50,000 on personal expenses such as MasterCard payments, cash withdrawals, and cheque payments.
After the volunteer and his son requested the return of the investment, BCSC staff maintains that Lau lied to them and said he used the $50,000 to purchase groceries to sell in the seniors' centre. Lau told the investor that he could not repay the funds until the groceries sold. This was untrue, as Lau had already spent the investor's money on himself.
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 September 8, 2015 at 9:00am.
You may view the notice of hearing on our website, www.bcsc.bc.ca, by typing Tin Chao Alan Lau or 2015 BCSECCOM 302 in the search box. You can find information about disciplinary proceedings 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 of Canada (MFDA).
About the British Columbia Securities Commission (www.bcsc.bc.ca)
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:
- A securities market that is fair and warrants public confidence
- A dynamic and competitive securities industry that provides investment opportunities and access to capital
Learn how to protect yourself and become a more informed investor at www.investright.org
SOURCE British Columbia Securities Commission
For further information: Media Contact: Richard Gilhooley, Media Relations, 604-899-6713; Public inquiries: 604-899-6854 or 1-800-373-6393 (toll free)