The British Columbia Securities Commission (BCSC) announced August 9 that one of its panels found that a B.C. man committed fraud, made false statements and illegally distributed securities.
The panel ruled that Won Sang Chen Cho (also known as Craig Cho) committed fraud through his various businesses, including Chosen Media and Groops Media.
Chosen Media is an online media company, website design company and media-buying agency. Groops Media is a media company operating various websites.
Between January 2011 and February 2012, Cho – doing business as Chosen Media – promoted securities on the Vancouver Craigslist website and sought minimum investments of $5,000.
The findings state that Cho raised $101,846 from five investors, to whom he returned purported investment returns of $62,000.
Cho admitted to promising extremely high rates of return that were "risk-free" and to telling prospective investors that he would deposit their funds into accounts at various sports-betting websites.
He admits he told investors that profit would be generated by the "generous signup and reload bonuses" provided by the sports-betting websites.
The panel also found that in December 2012, during the course of the Chosen Media investigation, Cho sent an email promoting an investment with Groops Media requiring a minimum $10,000 investment.
He admitted that this was after he had been warned by BCSC staff that he must comply with prospectus requirements when distributing securities through Chosen Media.
The panel stated that, "as a result of [Cho's] dishonest conduct, investors' pecuniary interests were put at risk and three of the five investors suffered actual loss."
The panel directed the parties to make submissions on sanctions according to the schedule set out in the findings.
