British Columbia Securities Commission

British Columbia Securities Commission

June 21, 2017 14:00 ET

Vancouver man arrested for breaching a B.C. Securities Commission order

VANCOUVER, BRITISH COLUMBIA--(Marketwired - June 21, 2017) - Won Sang Shen Cho (a.k.a. Craig Cho, Kevin Kim, Jae Hoon Kim), 46, of Vancouver, B.C., was arrested on June 13, 2017, following an investigation by the British Columbia Securities Commission's (BCSC) Criminal Investigations Branch. The warrant for Cho's arrest was issued in connection with multiple charges against Cho under the Securities Act. Cho was arrested at his residence in Vancouver with assistance from Vancouver Police.

It is alleged that from July 2015 to November 2016, Cho solicited over $270,000 from five different investors. Cho published advertisements throughout Canada and the U.S. offering to sell shares in online gambling and sports betting businesses. In doing so, it is alleged Cho breached a Commission order, made misrepresentations, traded without registration, and failed to file prospectuses.

Cho is currently charged with 13 counts under the Securities Act. If proven, the charges in this matter are punishable by a fine of up to $3 million, up to three years in prison, or both.

On June 14, 2017, Cho was released on cash bail. A trial date in this matter has yet to be set.

The order that Cho is alleged to have breached was issued by the BCSC under the Securities Act on October 22, 2013, for his involvement with Chosen Media and Groops Media, both of which were B.C. based businesses. Cho illegally distributed securities, made misrepresentations and perpetrated a fraud. Because of these findings, Cho is permanently banned from trading and purchasing securities and from engaging in investor relations activities. He is also permanently prohibited from becoming or acting as a director or officer of any issuer or registrant and from acting in a management or consultative capacity in connection with the securities market.

Cho was also ordered to pay $20,569 owing to investors and an administrative penalty of $200,000.

The Commission would like to thank the Richmond RCMP Economic Crime Unit and the Vancouver Police Department for their assistance during the investigation and arrest of Cho.

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.

Contact Information

  • Media Contact:
    Alison Walker
    604-899-6713

    Public Inquiries:
    604-899-6854 or 1-800-373-6393 (toll free)
    inquiries@bcsc.bc.ca