Fraud victims to get $2 million back: BCSC

Investors who lost approximately $33 million to a real estate investment scheme will now share in the $2 million that receivers have managed to recover.

Back in 2016, a panel of the British Columbia Securities Commission (BCSC) ruled that a pair of sisters — Siu Mui “Debbie” Wong and Siu Kon “Bonnie” Soo — and their companies had misappropriated approximately $1.2 million, inflated the value of assets, and lied to investors.

It ordered $22 million in sanctions against them, including $12 million in penalties, and permanently banned them from the securities industry.

While none of the sanctions have been paid, the appointed receiver, MNP Ltd. did recover about $2 million that it is now returning to investors.

According to MNP’s latest report to the court, about $2.5 million has been recovered from the sale of various properties, along with another $370,000 in cash and interest accumulated since the process began. Almost $640,000 of that total has been paid out in legal and other fees.

The report said the receiver doesn’t expect to make any further recovery of assets, so it’s seeking to pay those funds out to harmed investors.

Each investor will receive a pro-rated share of that money, based on the amounts they lost.

Claims are due Sept. 15, although MNP can extend that deadline for up to four weeks. The receiver will then review and approve claims.

James Langton

James is a senior reporter for Advisor.ca and its sister publication, Investment Executive. He has been reporting on regulation, securities law, industry news and more since 1994.