2 mortgage investment corporations facing fraud allegations in B.C.
40 would-be investors are out $1.1 million, according to the B.C. Securities Commission
The B.C. Securities Commission (BCSC) is accusing three B.C. men and two mortgage investment corporations of bilking 40 people of approximately $1.1 million dollars over a two-year period.
In a notice of hearing, the BCSC alleges Donald Bruce Edward Wilson, David Scott Wright and Patrick K. Prinster committed fraud between June 2011 and August 2013.
The notice says the trio operated DominionGrand II Mortgage Investment Corporation (DG Mortgage) and DominionGrand Investment Fund Inc. (DG Fund), which held themselves out as mortgage investment corporations.
The investors were told, according to the BCSC document, that their money would be invested in mortgages secured by real estate.
However, the BCSC alleges, the accused did not invest the money in mortgages and instead distributed the majority of it to their other companies, business expenses and commissions to finders.
None of the allegations have been proven.
A hearing before a BCSC panel of commissioners has been scheduled for July 11, 2017 in Vancouver.