A B.C. woman has agreed to pay the B.C. Securities Commission (BCSC) a $3-million penalty after she admitted that she fraudulently raised at least $30 million from investors.

The BCSC said Virginia Tan took money raised from investors and put it into short-term, high-interest loans, making interest and principal payments with money raised from other investors.

Similar arrangements are often referred to as "Ponzi schemes."

"Tan did not earn income from any other business," the BCSC said in a release Wednesday. "She made interest and principal payments to investors with funds she raised from other investors and with a small amount of her own funds."

The BCSC said Tan was unable to raise enough funds to pay investors and she stopped paying them by late 2015.

 As a result, several investors filed lawsuits against her, one of which forced her into bankruptcy.

The BCSC said a trustee has been appointed to liquidate Tan's assets and to distribute the proceeds to her creditors, including her investors.

The BCSC has also permanently banned Tan from various investment-related activities in the future, including consulting, managing and investor relations.

With files from Megan Batchelor.