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Insurance Group?s Top Officers Allegedly Frauded Investors About $47 Million

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canada fraud investigations

The BCSC or the British Colombia Securities Commission recently issued a notice of hearing regarding fraud involving the top officers of a fast-growing insurance company. The insurance group?s leaders allegedly frauded hundreds of people by convincing them to purchase unsecured loan agreements.

Planned Fraud?

FS Financial Strategies Inc directors and founders Aik Guan “Frankie” Lim and Scott Thomas Low allegedly raised more than $47 million from 2012 to 2017 by failing to inform their investors that the company is in dire financial situation, not profitable, and was trying to cover expenses by raising money from unsuspecting investors.

The issued notice says that the company?s general manager Darrell Wayne Wiebe is aware of the true financial condition behind FS Insurance Group and helped commit fraud by advising Low and Lim about the amount of money that the company needs to raise from investors to stay in business.

BCSC disclosed that investors were promised monthly interest payments between 10% and 12% and basically created an illusion of profitability courtesy of Low?s and Lim?s actions. The duo reportedly opened new offices one after the other, donated money to charities, told customers that they are planning to take the insurance group public, and hosting expensive hotel parties for customers and staff.

More People Involved

The BCSC notice of hearing named 6 additional persons ? Chun Ying “Jim” Pan, Chung-Sheng “Johnson” Kao, George Lay, Gagan Deep Bachra, Chi Kay “Dixon” Wong and Meng Cher “Philip” Tsai. These 6 individuals were appointed by Low and Lim as directors of FS Insurance Groups related companies and were part of the companies that allegedly sold securities without a prospectus and without a registration that allows them to engage in such business dealings.

Lim and Low are further alleged by the BCSC to have violated the B.C. Securities act by still engaging in the trade of selling securities despite making a legal promise to the BCSC?s executive director in 2014 saying that they would stop. This is aside from selling securities without registration, selling securities without a prospectus, and other allegations of fraud.

A Hearing is On Its Way

Everyone named in the notice is expected to attend the hearing scheduled on December 4, 2018, at 9 in the morning. Interested parties may view the notice of hearing at the BCSC website by using the search bar to look for the term ?2018 BCSECCOM 330? or any of the names of the respondents. If looking for information regarding disciplinary proceedings, it can be found in the BCSC website?s Enforcement section.

Note that the BCSC or the British Columbia Securities is an independent provincial government agency that is responsible for the regulation of British Columbia capital markets through the administration of the Securities Act. They act to protect a competitive and dynamic securities industry to provide investment opportunities to people and foster a securities market that is fair and trusted by people.

Are you in need of help from a private investigator in Canada to gather information to investigate a fraud? Contact us and we?ll discuss with you which of our private investigation services will be best for your needs.

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