Three men and two mortgage investment companies have received financial sanctions from the British Columbia Securities Commission.
A total of $1.7 million in sanctions were imposed by the regulator following fraudulent activity which raised $1.1 million from investors, almost all of which was lost.
BCSC ordered Patrick K. Prinster and David Scott Wright to pay $250,000 and Donald Bruce Edward Wilson was ordered to pay $150,000 for diverting investors' funds from mortgages secured by real estate, which was the purpose described in marketing materials.
Financial sanctions were also imposed on two mortgage investment companies: $561,479 on DominionGrand II Mortgage Investment Corporation, and $500,961 on DominionGrand Investment Fund Inc.
The three men were also banned for life from:
- Trading in or purchasing securities or exchange contracts;
- Using exemptions set out in the Securities Act;
- Becoming or acting as a registrant or promoter;
- Acting in a management or consultative capacity in the securities market;
- Engaging in investor relations.
BCSC’s panel said that Prinster, Wright and Wilson diverted the funds and carried out their misconduct "despite warnings and concerns expressed to them from multiple sources," although there was no evidence that they personally benefitted from their actions.