The British Columbia Securities Commission (BCSC) has issued a notice of hearing alleging that B.C. resident Thomas Arthur Williams committed fraud through a group of companies under his control and raised money illegally.
Williams, along with several finders used to introduce investors to the Global Group of Companies, raised approximately $11.7 million from 123 investors between 2007 and 2010.
BCSC alleges that Williams promised investors that their investments were protected from securities laws and guaranteed returns of at least 2% per month.
He also allegedly invested investor funds totalling $5.8 million with companies and individuals with histories of securities fraud.
“Williams did not inform investors about the fraudulent background of the people he was dealing with, nor did he receive any returns or principal from any of the investments he made,” the BCSC said in the notice.
“Williams did not inform his investors that none of his investments produced any returns, but rather continued to raise more money from investors, provided monthly statements showing fictitious returns of up to 4% on their investments, and paid ‘interest’ and principal payments to some investors from other investors’ money.”
He continued to promise returns until 2011.
In addition, the BCSC alleges that Williams raised $5.3 million from 103 investors illegally, as the investors had no exemptions from securities laws relating to prospectus requirements.
None of these allegations has been proven. The BCSC will set a date for a hearing on July 22.
