VANCOUVER, Jan. 15, 2013 /CNW/ - The executive director of the British
Columbia Securities Commission has issued a temporary order and notice
of hearing alleging that a British Columbia man illegally distributed
securities and made misrepresentations.
The executive director issues temporary orders in situations where the
length of time required to hold a hearing could be prejudicial to the
The notice alleges that between January 2011 and February 2012, Wong
Sang Shen Cho (a.k.a. Craig Cho), doing business as Chosen Media,
promoted securities on the Vancouver Craiglist website, claiming that
in 40 to 60 days he would provide investors with rates of return from
30% to 50%. Cho told investors that he would deposit their funds into
accounts at various sports betting websites. Cho raised a total of
$101,846 from six investors, one of whom qualified for an exemption
from prospectus requirements. He raised $96,846 from the remaining five
investors, to whom he returned $52,892.
The notice also alleges that, in order to make the investment with
Chosen Media more appealing, Cho told prospective investors that there
were more investors with Chosen Media than there actually were.
BCSC staff contend that Cho breached securities laws by making
misrepresentations and illegally distributing securities.
The notice states that in addition to Chosen Media, Cho conducted
business under the names Interpower Sports and Groops Media. In
February 2002, Cho, doing business as Interpower Sports, sought
investors to fund an online gaming website. During an investigation
into the possible illegal distribution of Interpower Sports securities,
BCSC staff issued Cho a verbal and written caution advising him of his
legal obligations if he wished to distribute securities. Cho confirmed
he would cease his solicitations.
In July 2012, during the course of its investigation into Chosen Media,
BCSC staff again warned Cho that he must comply with prospectus
requirements when distributing securities. In December 2012, despite
his assurances that he would not continue to solicit investments
through Chosen Media, Cho sent an email to an undercover BCSC
investigator promoting an investment with Groops Media and guaranteeing
a minimum return of 20% within six months.
Neither Cho nor Cho's businesses have ever been registered or filed a
prospectus in B.C. Cho was convicted of criminal fraud in 1995.
These allegations have not been proven. A hearing will be held on
January 30, 2013 at 9:00am, at which time the executive director will
ask the commission to extend the temporary order until a hearing is
held and a decision is rendered.
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 Wong Sang Shen Cho, Craig Cho, Interpower Sports, Chosen
Media, Groops Media or 2013 BCSECCOM 05 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:
For media inquiries, please contact Richard Gilhooley, media relations, 604-899-6713.For public inquiries, please call 604 899 6854 or 1 800 373 6393 (toll free).