VANCOUVER, May 18, 2017 /CNW/ - A British Columbia Securities Commission (BCSC) panel has ordered monetary sanctions and permanent bans against Brendan James Schouw and his company Hornby Residences Ltd. for fraud.
In January 2017, a BCSC panel found that Schouw, a Vancouver resident, convinced one investor to invest $1 million in Hornby for a Vancouver real estate project. After depositing the investor's money into Hornby's bank account, Schouw redirected certain of the funds to his own account. Schouw spent approximately $75,000 of the investor's money on his personal mortgage payments and on his separate property management business, despite representing to the investor that all of his investment would be used for the development of a Vancouver real estate project.
In its decision, the panel stated "Schouw knowingly diverted the funds for his own purposes and did so with the knowledge that by so doing, he was putting the investor's funds at risk."
For his misconduct, Schouw has been ordered to pay an administrative penalty of $125,000. He has also been ordered to pay a disgorgement order of $74,612. Schouw and Hornby are jointly and severally liable for the disgorgement amount.
Both Schouw and Hornby have been ordered to cease trading in, and are permanently prohibited from purchasing, any securities or exchange contracts. They are both also banned from becoming or acting as a registrant or promoter, acting in a management or consultative capacity in connection with activities in the securities market, and engaging in investor relations activities.
Schouw has been ordered to resign any position that he holds as a director or officer of any issuer and has been permanently prohibited from becoming or acting as a director or officer of any issuer or registrant. The panel also ordered that securities of Hornby be permanently cease traded.
You may view the decision on our website, www.bcsc.bc.ca, by typing Brendan James Schouw, Hornby Residences Ltd. or 2017 BCSECCOM 168 in the search box. Information about disciplinary proceedings can be found in the Enforcement section of the BCSC website.
Please visit the Canadian Securities Administrators' (CSA) Disciplined List for information relating to persons and companies disciplined by provincial securities regulators, the Investment Industry Regulatory Organization of Canada (IIROC) and the Mutual Fund Dealers Association of Canada (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: Alison Walker, 604-899-6713; Public inquiries: 604-899-6854 or 1-800-373-6393 (toll free), [email protected]