More than 150 victims of an investment fraud perpetrated by two B.C.-based companies back in 2003 will be getting a portion of their money back after settling with the B.C. Securities Commission.
Vancouver-based Wellspring Capital Group Ltd. and Springpay Systems admitted to operating a Ponzi scheme promising high investment returns through sophisticated investments for seven months in 2003. Investors were told their money would be used to provide financing for new vehicles, a "rent relief" program, payroll deductions and a business expense reduction program.
None of the programs existed, and investors were paid through accounts managed by Springpay. More than 190 investors across Canada, including 38 in B.C., invested about $570,000 into the various programs after hearing about them largely through word-of-mouth advertising.
In September 2003, the BCSC froze about $440,000 of investors' money from two accounts. The money, plus interest gained since then, will be distributed to investors.