BCSC alleges that former registrant committed fraud
VANCOUVER, July 2, 2014 /CNW/ - The Executive Director of the British Columbia Securities Commission (BCSC) has issued a notice of hearing alleging that a former registrant committed fraud through a group of companies he controlled, and raised money illegally with the help of commissioned associates.
The notice alleges that Thomas Arthur Williams, a resident of B.C., was the directing mind, director and officer of the following companies (collectively, the Global Group of Companies):
- Global Wealth Creation Opportunities Inc.;
- Global Wealth Creation Opportunities Inc. (Belize);
- Global Wealth Financial Inc.;
- Global Wealth Creation Strategies Inc.;
- CDN Global Wealth Creation Club RW-TW; and
- 2002 Concepts Inc.
The notice also alleges that Williams used several finders to introduce investors to the Global Group of Companies (collectively, the Finders):
- Susan Grace Nemeth;
- Renee Michelle Penko;
- Paul Finney;
- Irene G. Beilstein;
- Christina Kiemel;
- Helena Yvonne Becker;
- Dennis Carl Weigel;
- Daniel Quoming Sam;
- Eric Clark;
- Sharon Downing; and
- Robert Laudy Williams.
BCSC staff contends that Williams purported to operate the Global Group of Companies as a business that provided managed risk opportunities, where he took loans from investors, invested them in financial contracts and paid interest to investors. To help him raise money from investors, Williams signed associate agreements with the Finders, and paid them commissions.
BCSC staff maintains that the respondents raised approximately $11.7 million from 123 investors between February 2007 and April 2010.
The notice alleges that Williams made promises to investors, including that their investments were shielded from securities laws, that he would provide returns of at least 2% interest per month with a potentially higher interest rate on a "best efforts" basis, and that he would preserve the integrity of their funds.
The notice also alleges that Williams invested about $5.8 million of investor funds with individuals and companies introduced by or connected to persons who had criminal or regulatory histories of securities fraud. Williams did not inform investors about the fraudulent background of the people he was dealing with, nor did he receive any returns or principal from any of the investments he made.
Williams did not inform his investors that none of his investments produced any returns, but rather continued to raise more money from investors, provided monthly statements showing fictitious returns of up to 4% on their investments, and paid "interest" and principal payments to some investors from other investors' money.
The notice alleges that although some investors started to get suspicious about Williams in mid-2008, Williams continued to promise investors until at least 2011 that they would get their money back shortly.
Staff are also alleging that, with the help of the Finders, Williams and the Global Group of Companies raised approximately $5.3 million from 103 investors who had no exemptions from securities laws pertaining to prospectus requirements, thereby rendering the distribution illegal.
During the relevant period, none of the respondents were registered under the Act in any capacity, and the Global Group of Companies has never filed a prospectus in respect of the distribution of its securities.
These allegations have not been proven. Counsel for the Executive Director will apply to set dates for a hearing into the allegations before a panel of commissioners on July 22, 2014 at 9:00am.
You may view the notice of hearing on our website www.bcsc.bc.ca by typing Global Wealth Creation Opportunities Inc., Global Wealth Creation Opportunities Inc. (Belize), Global Wealth Financial Inc., Global Wealth Creation Strategies Inc., CDN Global Wealth Creation Club RW-TW, 2002 Concepts Inc., Thomas Arthur Williams, Susan Grace Nemeth, Renee Michelle Penko, Paul Finney, Irene G. Beilstein, Christina Kiemel, Helena Yvonne Becker, Dennis Carl Weigel, Daniel Quoming Sam, Eric Clark, Sharon Downing, Robert Laudy Williams, or 2014 BCSECCOM 191 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 Persons List for information relating to persons 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