The British Columbia Securities Commission (BCSC) has sanctioned a B.C. man for committing fraud through his various businesses, which include Chosen Media and Groops Media.
Won Sang Chen Cho (also known as Craig Cho) has been permanently banned from trading in securities, purchasing securities or exchange contracts and from becoming or acting as a director or officer of any issuer or registrant.
Between January 2011 and February 2012, Cho promoted securities on Craigslist and raised $101,846 from five investors. He purportedly returned investment returns of $62,000 to these investors.
In addition, in December 2012, Cho promoted an investment with Groops Media while Chosen Media was the subject of the investigation by the BCSC, after being warned that he must comply with prospectus requirements when distributing securities through Chosen Media.
Cho admitted that he promised high, “risk-free” rates of return, and that he told investors that he would deposit their funds into accounts at various sports betting websites.
In August 2013, the BCSC determined Cho had committed fraud.
“Cho has been given several chances to correct his behaviour and has not taken them,” the BCSC panel said in its decision. “It is clear that he poses a serious and continuing risk to investors and to our markets.”
Cho has been ordered to pay the $20,569 still owing to investors, in addition to a $200,000 administrative penalty.
Chosen Media and Groops Media have been permanently cease-traded.
