Fraudster hit with $8.6M in fines, repayments after diverting investments into his own companies
Lower Mainland resident was diverting investors' money to his own companies
The B.C. Securities Commission has ordered a Lower Mainland man to pay more than $8 million in fines and reparations for defrauding investors.
Starting in 2009, Paul Se Hui Oei told investors he would use their money to fund two startup companies, Cascade Renewable Carbon Corp. and Cascade Renewable Organic Fertilizer Corp., a BCSC panel said Wednesday in a news release.
Instead, Oei used much of the money for other businesses he controlled: Canadian Manu Immigration & Financial Services Inc., and numbered companies 0863220 B.C. Ltd. and 0905701 B.C. Ltd.
As a result Oei and Canadian Manu have been ordered to repay $3.1 million to investors, which is the amount of the fraud minus what has already been returned.
The panel reported that the Cascade companies are no longer in business.
It also levied penalties of $4.5 million and $1 million to Hui and Canadian Manu for violating the Securities Act.
Oei was also ordered to resign from any position he holds as an officer of a securities company, permanently banned from taking part in investor relations activities, trading or purchasing securities.