BCSC alleges that former registrant and four B.C. companies committed fraud

VANCOUVER, Sept. 26, 2016 /CNW/ - The Executive Director of the British Columbia Securities Commission (BCSC) has issued a notice of hearing alleging that a former registrant and four companies that he controlled committed fraud.

The notice alleges that Paul Se Hui Oei, a Vancouver resident, perpetrated a fraudulent scheme in relation to securities of Cascade Renewable Carbon Corp. and Cascade Renewable Organic Fertilizer Corporation (collectively, Cascade). Oei, who was previously registered under the Act, solicited investors and told them that he would forward their money to Cascade to be used to cover Cascade's start-up costs.

Between July 2009 and November 2012, Oei raised approximately $13.3 million for Cascade through 64 investments, using 0863220 B.C. Ltd., 0905701 B.C. Ltd. and Canadian Manu Immigration and Financial Services Inc. Oei was a director and president of all three companies, and controlled Canadian Manu's bank accounts. Both 0863220 and 0905701 issued shares to the investors, which purportedly entitled investors to Cascade shares, and Canadian Manu purportedly held Cascade shares in trust for the investors. Oei used Canadian Manu's bank accounts to receive most of the investors' money. 

The notice alleges that of the $13.3 million raised from the Cascade investors, Oei forwarded less than $6.4 million to Cascade. He used the remaining approximately $6.9 million on expenses unrelated to Cascade, including transfers to his personal bank accounts, cash withdrawals, credit card payments, luxury car rentals, donations to charities, and payment of expenses of his immigration and insurance businesses.

The notice further alleges that Oei subsequently solicited the Cascade investors to invest in a new company called Organic Eco-Centre Corp. (OEC). Oei told them that if they paid an additional 15 per cent top-up of their Cascade investments, he would roll their investments into OEC shares. Oei did not disclose to the Cascade investors that he had given Cascade less than half of the money he raised from investors. He raised an additional $202,000 from 18 Cascade investors between June and August 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 November 1, 2016, at 9:00 a.m.

You may view the notice of hearing on our website www.bcsc.bc.ca by typing Paul Se Hui Oei, Canadian Manu Immigration and Financial Services Inc., 0905701 B.C. Ltd., 0863220 B.C. Ltd., Organic Eco-Centre Corp., or 2016 BCSECCOM 323 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 List for information relating to persons and companies 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 (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

To view the Chinese version of this press release, please click on the following link: http://files.newswire.ca/1511/BCSC_Chinese.pdf

SOURCE British Columbia Securities Commission

For further information: Media Contact: Alison Walker, 604-899-6713; Public inquiries: 604-899-6854 or 1-800-373-6393 (toll free), inquiries@bcsc.bc.ca


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