VANCOUVER, Aug. 16, 2016 /CNW/ - A British Columbia Securities Commission (BCSC) panel has sanctioned Alfredo Miguel "Michael" Yong, Inverlake Property Investment Group Inc., and Wheatland Business Park Ltd. for illegally distributing securities.
Inverlake and Wheatland are Alberta corporations that were incorporated in March 2008 and June 2008, respectively. Inverlake and Wheatland were incorporated to raise money for the purposes of acquiring and holding land in Alberta. Yong founded both companies.
Yong was a B.C. resident until late in 2008, at which point he moved to Alberta. For the relevant period, Yong was the sole director of both Inverlake and Wheatland, neither of which has ever filed a prospectus is B.C.
In September 2015, the panel found that Yong, Inverlake and Wheatland distributed securities without a prospectus. In its decision, the panel made various findings of illegal distribution against the respondents:
- Yong and Inverlake, with respect to distributions to 23 investors for a total of $910,650; and
- Yong and Wheatland, with respect to distributions to 15 investors for a total of $1,090,479.
In its decision, the panel stated, "There is no doubt that the investors in Inverlake have suffered harm. The real estate acquired by Inverlake with the investors' funds has been lost due to foreclosure and there is no evidence that these investors will recover any of their investments."
In regards to the Wheatland investors, the panel noted that their outcome is still undetermined, but said that "the evidence suggests at least the possibility of significant loss for these investors."
For his misconduct, the panel ordered that Yong pay to the Commission an administrative penalty of $60,000. The panel also prohibited Yong from trading in or purchasing any securities or exchange contracts (with limited exceptions), 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.
The panel also ordered that Yong resign any positions he holds as, and is prohibited from becoming or acting as, a director or officer of any issuer or registrant (with limited exceptions). Yong's market bans are to remain in effect until the later of the date that he pays his administrative penalty and August 3, 2021.
The panel also permanently prohibited Inverlake and Wheatland from trading in or purchasing any securities or exchange contracts, 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. The panel also permanently cease traded securities of Inverlake and Wheatland.
You may view the sanctions decision on our website www.bcsc.bc.ca by typing Inverlake Property Investment Group Inc., Wheatland Business Park Ltd., Alfredo Miguel Yong or 2016 BCSECCOM 258 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 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 (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
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