VANCOUVER, Feb. 12, 2015 /CNW/ - A British Columbia Securities Commission panel has found that Rodney Jack Wharram and three companies for which he is a director and president committed fraud.
In its decision, the panel found that Wharram, West Karma Ltd. and the Falls Capital Corp. committed fraud when they took $139,000 from Falls Capital, deposited it with West Karma, and then used it for Wharram's personal expenses.
The panel also found Wharram, West Karma and Deercrest Construction Fund Inc. committed fraud when they took $130,000 from Deercrest, deposited it with West Karma, and then used it for Wharram's personal expenses. Wharram and Deercrest were found to have committed fraud when they took $265,000 directly from Deercrest's bank accounts and used it for Wharram's personal expenses.
Writing about the deprivation caused by Wharram and his companies' misconduct, the panel wrote, "the investors have lost all the money Wharram used for personal purposes. There is no evidence of repayment." The panel added that, "the evidence is clear that Wharram had subjective knowledge of the prohibited acts. He knew that funds were being diverted for personal expenses."
In its decision, the panel also found that Wharram made false statements to commission staff, and dismissed other allegations of fraud.
The panel directed the parties to make submissions on sanctions according to the schedule set out in the findings.
You may view the findings decision on our website www.bcsc.bc.ca by typing Rodney Jack Wharram, Deercrest Construction Fund Inc., West Karma Ltd., The Falls Capital Corp., or 2015 BCSECCOM 59 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 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)