BCSC panel finds that marketing director and lead strategist at FS Financial Strategies Inc. committed obstruction of justice

VANCOUVER, BC, Dec. 11, 2020 /CNW/ - A British Columbia Securities Commission (BCSC) panel has found that a marketing director and her colleague at FS Financial Strategies Inc. (FS) obstructed justice when they coached an investor to lie to a BCSC investigator. Jing "Janet" Zhang was the company's marketing director and Wang was a lead strategist.

In 2014, Zhang introduced a B.C. man to an investment at FS and Wang assisted Zhang in the process of documenting the investment. The investor initially put in $25,000 on the premise that he would be guaranteed a 10 per cent return for three years, risk free.

However, he asked for his money back a few days later, saying he regretted making the investment. While waiting for a response, the investor's mother complained to the BCSC about the investment.

Zhang said that the "the refund would depend on how the investor and his mother handled the matter with the [BCSC]."

Wang and Zhang then coached the investor to lie to a BCSC investigator by telling the investigator that the concerns that prompted the complaint had been resolved. The coaching included role-playing where Wang pretended to be the investigator taking the investor's call.

After rehearsing the call repeatedly, Wang and Zhang listened in while the investor called the investigator and read the script with the false story.

The panel found that "this fabrication was clearly an attempt to cause the investigator to stop pursuing investigation of the complaint."

After the call, the investor and his mother went with Zhang to her personal bank, where she withdrew $25,000 and gave it to the investor. A few weeks later, FS reimbursed Zhang for that payment.

As a result of their conduct, the panel found that both Wang and Zhang concealed or withheld, or attempted to conceal or withhold, information reasonably required for an investigation under the Securities Act.

The panel will impose sanctions after considering submissions from BCSC staff and the respondents. 

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

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