The BC Securities Commission (BCSC) has ordered a hearing into the alleged fraud by two Alberta sisters who raised millions of dollars through the sale of shares – primarily in B.C. – for an industrial park development in Alberta, then used the money for other business purposes.
Siu Mui “Debbie” Wong and Siu Kon “Bonnie” Soo sold shares in a joint venture with Wheatland Industrial Park Inc., an Alberta corporation with property in Wheatland. The company was co-founded by Wong and Soo.
The sisters sold shares in the venture mostly to B.C. investors, the BCSC alleges, despite the fact the company never filed a prospectus in B.C. The allegations have not yet been proven.
A BCSC investigation concluded that “at least 78 individuals and corporate entities purchased shares in the joint venture at around $85,000 per share.”
The joint venture was ostensibly intended to develop the Wheatland property into parcels of industrial land that would then be sold at a profit for the investors and Wheatland.
The BCSC alleges Wong and Soo used joint-venture money that they raised to make at least $5.2 million in loans to themselves and their various companies.
“They used the loans for their own business endeavours unrelated to Wheatland, and they made the loans without the knowledge or permission of investors,” the BCSC says is a press release.
“Wong and Soo also transferred 33.5 shares in the joint venture, worth approximately $2.8 million, without consideration to companies held by their adult children. They did this without the knowledge or permission of investors.”
Wong and Soo have agreed to repay money owed to Wheatland, plus interest, by July 31, 2013.
The BCSC has applied to hold a hearing into the allegations on June 25, 2013.
