British Columbia Securities Commission

British Columbia Securities Commission

April 30, 2008 09:30 ET

British Columbia Securities Commission: Commission Panel Finds Deceased Man Committed Fraud

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 30, 2008) - A British Columbia Securities Commission panel has found that a Vancouver businessman, now deceased, perpetrated a fraud when he made misrepresentations to investors, sold them promissory notes that offered 100 per cent returns, and took investor funds for his own use.

The commission panel found that Laurence Michael Schlosser, who died in December 2007, illegally traded and distributed securities, made misrepresentations to investors, and committed fraud when he sold $288,000 of securities to 11 B.C. investors.

Schlosser told investors that he ran an advertising business called Global Village West Marketing Group. The panel found Schlosser lied when he told investors that Global Village had signed advertising contracts with brand-name companies. It also found that he presented business plans and projections that were untrue.

For each $7,000 invested with Schlosser and Global Village, investors received a promissory note for $14,000 payable after one year. Schlosser did not repay the notes, and all of the investors lost their money. The panel found that Schlosser used investors' money for business and personal expenses.

Schlosser died after a hearing into allegations that he had committed securities fraud had concluded, but the panel felt it was in the public interest to release its findings.

"In some cases, that would be the end of the matter, but this is not one of those," the panel said. "We have found that Schlosser defrauded B.C. investors, and we consider it to be in the public interest to make our findings public. Our findings may be helpful in preventing future investors from suffering the same fate in similar circumstances."

The panel will not make any orders.

The B.C. Securities Commission is the independent provincial government agency responsible for regulating trading in securities within the province. You may view the decision on our website www.bcsc.bc.ca by typing in the search box, Laurence Michael Schlosser or 2008 BCSECCOM 214. If you have questions, contact Ken Gracey, Media Relations, 604-899-6577.

Learn how to avoid investment fraud at the BCSC's investor education website: www.investright.org.

Contact Information

  • British Columbia Securities Commission
    Ken Gracey
    (604) 899-6577 or (B.C. & Alberta) 1-800-373-6393
    Website: www.bcsc.bc.ca