He diverted an investor’s funds for his own purposes
A British Columbia Securities Commission (BCSC) levied on Thursday a $125,000 fine on a Vancouver real estate developer for fraud. He was also directed to pay a disgorgement order of $74,612.
Earlier this year, a BSBC panel found that Brendan Schouw spent nearly $75,000 of an investor’s money on his personal mortgage payments and his property management business.
In November 2009, Schouw convinced one investor to spend $1m in Hornby Residences for a Vancouver real estate project. Schouw is the sole director of Hornby, a B.C. company. He promised the investor that all of the funds would be used for the real estate project.
The investor received an investment certificate promising 18% simple interest per year. After depositing the $1m into Hornby’s bank account, Schouw redirected approximately $75,000 for his own use, said the panel.
Both Schouw and Hornby have been ordered to cease trading in, and are permanently prohibited from purchasing, any securities or exchange contracts. They were also banned from becoming or acting as a registrant or promoter, acting in a management or consultative capacity in connection with activities in the securities market, and engaging in investor relations activities.
The panel ordered Schouw to resign any position that he holds as a director or officer of any issuer. He has also been permanently prohibited from becoming or acting as a director or officer of any issuer or registrant.
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Earlier this year, a BSBC panel found that Brendan Schouw spent nearly $75,000 of an investor’s money on his personal mortgage payments and his property management business.
In November 2009, Schouw convinced one investor to spend $1m in Hornby Residences for a Vancouver real estate project. Schouw is the sole director of Hornby, a B.C. company. He promised the investor that all of the funds would be used for the real estate project.
The investor received an investment certificate promising 18% simple interest per year. After depositing the $1m into Hornby’s bank account, Schouw redirected approximately $75,000 for his own use, said the panel.
Both Schouw and Hornby have been ordered to cease trading in, and are permanently prohibited from purchasing, any securities or exchange contracts. They were also banned from becoming or acting as a registrant or promoter, acting in a management or consultative capacity in connection with activities in the securities market, and engaging in investor relations activities.
The panel ordered Schouw to resign any position that he holds as a director or officer of any issuer. He has also been permanently prohibited from becoming or acting as a director or officer of any issuer or registrant.
Related stories:
Condo owners file $3M suit over developers’ hidden charges
Vancouver real estate developer committed fraud, securities panel finds
