A Vancouver developer has been ordered to pay back investor dollars he used to finance his own mortgage, according to documents released by the B.C. Securities Commission (BCSC).
Brendan James Schouw, director of Hornby Residences Ltd., was found to have solicited $1 million from an investor in 2009. The money was meant to finance a development called Artemisia on Hornby Street in downtown Vancouver.
The BCSC. — the province's capital markets regulator — found that shortly after the money was deposited into Schouw's business account, he redirected funds into his personal account and spent nearly $75,000 investor dollars on his own mortgage payments.
The BCSC has since ruled the developer committed fraud, and on Thursday ordered him to pay the money back, in addition to a $125,000 administrative penalty.
According to the BCSC. decision, Schouw is also banned from trading securities in B.C., directing any company and engaging in investor relations activities.
Schouw has long been one of the city's premier developers, with many towers, including Grace and Illiad, to his credit.
According to the documents, Schouw's Hornby Residences Ltd. is currently filing for bankruptcy.