40 investors were supposedly duped out of $1.1 million
The British Columbia Securities Commission (BCSC) has accused three men – and the two mortgage investment firms they controlled – of fraud, after they supposedly used investors’ money for other purposes in violation of the Securities Act.
BCSC Executive Director Peter Brady filed a notice of hearing last week against Donald Wilson, David Wright, Patrick Prinster, DominionGrand II Mortgage Investment, and DominionGrand Investment Fund.
Wilson was the president, secretary, and a director of DG Mortgage; Wright was a director of DG Mortgage and DG Fund; and Prinster was a director, agent, or both of DG Mortgage and DG Fund. Both firms were dissolved in 2015.
According to the notice, the firms allegedly raised about $1.1m from 40 investors, mostly from B.C., between June 2011 and August 2013. They “represented to investors that their money would be invested in mortgages secured by real estate but they did not do that.
“Instead, most of the money went to companies related to the Respondents. Those companies did not invest in mortgages,” Brady’s notice added. Funds were also supposedly spent on commissions to finders, and business expenses.
The notice said Wilson, Wright, and Prinster “permitted, authorized, or acquiesced in the companies’ contraventions” of the Securities Act. A hearing has been set for 11 July.
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