VANCOUVER, Dec. 20, 2013 /CNW/ - In a settlement agreement with the
British Columbia Securities Commission, Kenneth Dean Chung has admitted
that he illegally sold securities in a B.C.-based company that is now
The agreement states that between March and July of 2008, Chung
distributed securities of 0804469 B.C. Ltd. to four individual
investors by issuing promissory notes in the amount of $100,000 each,
raising a total of $400,000. The four investors were all residents of
B.C., as was Chung during the period in question. Chung has never been
registered in B.C., and 0804469 has never filed a prospectus or made
any exempt distribution filings with the BCSC.
The company sought to raise capital for the development of a real estate
project located in Kelowna, B.C. The promissory notes offered investors
a 20% per annum return on their money, and had a term of six months.
The settlement notes that the Kelowna project eventually fell apart as
a result of 0804469's inability to obtain additional financing during
the 2008 financial crisis.
Chung acknowledged that by distributing and trading the securities of
0804469 without having filed a prospectus and without the appropriate
exemptions, he breached securities laws regarding registration and
For his misconduct, Chung must resign any position that he holds as a
director or officer of any issuer or registrant, and he is prohibited
from becoming or acting as a director or officer of any issuer or
registrant for a period of five years. He is also prohibited, for the
same period, from acting in a management or consultative capacity in
connection with the securities market, and from engaging in investor
relations activities. Chung is required to disseminate to the public
any information or record relating to the affairs of 0804469 necessary
for investors to claim their investments as a loss on their income
The agreement also noted that Chung personally invested over $100,000,
and did not recover any of his investment.
You may view the settlement agreement on our website www.bcsc.bc.ca by typing Kenneth Dean Chung or 2013 BCSECCOM 77 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).
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
A securities market that is fair and warrants public confidence
A dynamic and competitive securities industry that provides investment
opportunities and access to capital
SOURCE: British Columbia Securities Commission
For further information:
Richard Gilhooley, Media Relations
604-899-6854 or 1-800-373-6393 (toll free)
Learn how to protect yourself and become a more informed investor at www.investright.org