VANCOUVER, Oct. 25, 2013 /CNW/ - A British Columbia Securities
Commission panel has sanctioned a B.C. man for committing fraud.
In August 2013, a commission panel found that Won Sang Chen Cho (a.k.a.
Craig Cho) committed fraud through his various businesses, including
Chosen Media and Groops Media.
Between January 2011 and February 2012, Cho, doing business as Chosen
Media, promoted securities on the Vancouver Craigslist website and
sought minimum investments of $5,000. The panel found that Cho raised
$101,846 from five investors, to whom he returned purported investment
returns of $62,000.
Cho admitted to promising extremely high rates of return that were "risk
free", and to telling prospective investors that he would deposit their
funds into accounts at various sports betting websites. He admitted
that he told investors that profit would be generated by the "generous
signup and reload bonuses" provided by the sports betting websites.
The panel also found that in December 2012, during the course of the
Chosen Media investigation, Cho sent an e-mail promoting an investment
with Groops Media requiring a minimum $10,000 investment. He admitted
that this was after he had been warned by BCSC staff that he must
comply with prospectus requirements when distributing securities
through Chosen Media.
In its sanctions decision, the panel stated that, "Cho has been given
several chances to correct his behaviour and has not taken them. It is
clear that he poses a serious and continuing risk to investors and to
For his misconduct, Cho is permanently banned from trading in
securities, purchasing securities or exchange contracts, and from
becoming or acting as a director or officer of any issuer or
registrant. He is also permanently prohibited from becoming or acting
as a registrant, investment fund manager or promoter, from engaging in
investor relations activities, and from acting in a management or
consultative capacity in connection with the securities market.
The panel ordered Cho to pay the $20,569 still owed to investors, as
well as an administrative penalty of $200,000.
The panel also permanently cease-traded Chosen Media and Groops Media.
The B.C. Securities Commission is the independent provincial government
agency responsible for regulating trading in securities within the
province. You may view the decision on our website, www.bcsc.bc.ca, by typing Cho, Chosen Media, Groops Media or 2013 BCSECCOM 454 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:
If you have questions, contact Richard Gilhooley, media relations, 604-899-6713.For public inquiries, call 604 899 6854 or 1 800 373 6393 (toll free).