VANCOUVER, July 31, 2012 /CNW/ - The executive director of the British Columbia Securities Commission has issued a notice of hearing alleging that a woman licensed to sell life insurance committed fraud.
The notice alleges that Lynne Rae Nickford (a.k.a. Lynne Rae Zlotnik) perpetrated a fraud on investors when she transferred approximately $1.3 million of investor money to her personal account. Nickford is a B.C. resident, and she was licensed to sell life insurance until her license was revoked in April of 2010.
Between January 2009 and March 2010, Nickford raised approximately $2 million from 13 investors by issuing approximately $1.4 million of promissory notes in the name of her company, Lynne Zlotnik Wealth Management. The balance of the funds came from investors who believed they were making loans to, or investing in, LZ Wealth Management. Investors were predominantly women, and most relied on Nickford as their financial advisor.
The notices alleges that Nickford transferred approximately $1.3 million of investor money from her business account to her personal account. She then withdrew these funds from her personal account to pay for her personal expenses, including food, clothing and rent payments. Nickford also withdrew a total of approximately $973,000 in cash from her personal account, using some or all of it to gamble at casinos in the Vancouver area.
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 September 18, 2012 at 9:00am.
The B.C. Securities Commission is the independent provincial government agency responsible for regulating trading in securities within the province. You may view the notice of hearing on our website www.bcsc.bc.ca by typing Lynne Rae Nickford, Lynne Rae Zlotnik, Lynne Zlotnik Wealth Management or 2012 BCSECCOM 302 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).
For media enquiries, contact Richard Gilhooley, media relations, 604-899-6713. For public enquiries, call 604 899 6854 or 1 800 373 6393 (toll free).
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SOURCE British Columbia Securities Commission