According to securities researchers, a Vancouver woman allegedly used new investor funds to pay off previous investors.
BC Securities Commission (BCSC) investigators allege that a Vancouver woman used a BC company to fraudulently raise money for alleged real estate investments.
The commission has issued a hearing notice to Cherie Evangeline White after she and her company KingdomInvesments2015 Inc. they allegedly committed fraud, distributed securities illegally and obstructed justice.
Between 2016 and 2019, White and Kingdom raised approximately $ 1.25 million from 24 investors through the distribution of company securities. The company promised significant returns on the “settlement and change” and “purchase and retention” of BC real estate, the commission said in a June 8 press release.
However, White and the company later used the money of nine investors to pay off other investors and a personal loan in 2017 and 2018. In August 2018, White and Kingdom raised an additional $ 100,000 from two unsecured investors. – that the company was impatient in payments to other investors, the commission specifically claimed.
While offering securities, White did not provide investors with a prospectus, a document that describes the nature of the investment. Investments did not qualify for a pamphlet exemption either, the commission said.
“The BCSC alleges that White, as the sole director and officer of Kingdom2015, authorized, allowed or accepted the company’s fraud and illegal distributions,” the commission noted.
In 2020, researchers approached White and she allegedly did not cooperate.
“White declined to provide the documents and information required by BCSC staff during a mandatory interview, saying it was a ‘waste of my time,’ which is an obstruction of justice under the BC Securities Act.” affirm the commission.
The commission’s allegations have not been substantiated. White is scheduled to appear before a panel on July 14.
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