A B.C. company and its sole officer and director are guilty of committing fraud and using an investor’s money to pay personal expenses, according to a British Columbia Securities Commission panel.
Brendan James Schouw, known in Vancouver for developing such projects as Grace and Iliad, convinced an investor in November 2009 to invest $1 million in Hornby Residences Ltd., a real estate project in Vancouver. Schouw guaranteed the investor the investment would bring in returns of 18% per annum and promised repayment of the principal. Schouw told the investor 100% of the $1 million would be invested in the development project.
The investor deposited money into a bank account belonging to the company. The BCSC said Schouw then moved a portion of this money into his personal account and spent $75,000 on his personal mortgage and on unrelated company business.
“Those funds were both put at risk and ultimately lost,” the panel said.
The BCSC initially announced the allegations in November, at which time Schouw told Business in Vancouver via email that he emphatically denied all claims.
Prior to the ruling, the BCSC’s executive director had alleged that Schouw and Hornby had “improperly diverted” $440,000 of the investor’s money, but the panel dismissed this allegation.
Schouw has never been registered with the BCSC.
- With files from Glen Korstrom
@EmmaHampelBIV
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