VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sept. 21, 2016) - A British Columbia Securities Commission (BCSC) panel has permanently banned Tin Chao Alan Lau from B.C.'s capital markets for fraud.
In June, the panel found that Lau, a founder and director of a non-profit seniors' centre, persuaded an elderly volunteer at the centre to invest $50,000 in the seniors' centre in December 2013. Lau told the investor that his investment would be used to buy and resell goods to low income seniors. Instead, the panel found that Lau deposited the investor's money into his own bank account and used it to pay for personal expenses.
The panel found that Lau drove the investor to the investor's bank and completed documents directing payment of the funds to Lau personally. The documents were written in English, which the investor could neither read nor speak. The investor believed his funds were being deposited to the seniors' centre.
When discussing Lau's conduct, the panel stated that "Fraud against a vulnerable senior is a particularly egregious form of fraud." The panel also noted "The investor testified that he considered Lau as his mentor and regarded him highly. Lau's misconduct in these circumstances is particularly serious."
For his misconduct, the panel has ordered that Lau pay an administrative penalty of $85,000. The panel also ordered that he pay a disgorgement of $37,266, that being the amount obtained by Lau after repaying $12,734 in interest and principal to the investor. Lau must also resign any position he holds as, and is permanently prohibited from becoming or acting as, a director or officer of an issuer or registrant.
The panel also ordered that Lau be permanently banned from trading in or purchasing securities or exchange contracts, becoming or acting as a registrant or promoter, acting in a management or consultative capacity in connection with activities in the securities market, and engaging in investor relations activities.
You may view the sanctions decision on our website www.bcsc.bc.ca by typing Tin Chao Alan Lau or 2016 BCSECCOM 320 in the search box. Information regarding disciplinary proceedings can be found in the Enforcement section of the BCSC website.
Please visit the Canadian Securities Administrators' Disciplined List for information relating to persons and companies disciplined by provincial securities regulators, the Investment Industry Regulatory Organization of Canada (IIROC) and the Mutual Fund Dealers Association (MFDA).
About the British Columbia Securities Commission (www.bcsc.bc.ca)
The British Columbia Securities Commission is the independent provincial government agency responsible for regulating capital markets in British Columbia through the administration of the Securities Act. Our mission is to protect and promote the public interest by fostering:
- A securities market that is fair and warrants public confidence
- A dynamic and competitive securities industry that provides investment opportunities and access to capital
Learn how to protect yourself and become a more informed investor at www.investright.org.