B.C.-based siblings accused of $60M US securities fraud
Brother and sister accused of fraud over alleged illegal bond issues
The B.C. Securities Commission is alleging that a brother and sister who operated two companies committed $60 million US in fraud and distributed securities illegally.
The commission says Winter Huang (also known as Dong Huang) was a director and the controlling mind of Pegasus Pharmaceuticals Group Inc. and Careseng Cancer Institute Inc., while his sister Vicky Dancho (also known as Ju Huang) was a director, CEO and president of Careseng Cancer.
Both siblings were B.C. residents at the time.
The commission alleges that between April 2008 and August 2012, Pegasus Pharmaceuticals raised around 65 million US from a bond issue in Taiwan, of which 56 million US breached securities laws.
It also alleges Huang committed fraud by issuing 36.4 million US in bonds to Taiwanese investors that included guarantees by Careseng Cancer.
It says Huang and Dancho knew, or ought to have known, that these guarantees were false as Careseng Cancer had no operations, no employees, no revenue and less than $50,000 US in assets.
The commission says Pegasus also fraudulently raised about $15.4 million between January 2011 and August 2012 for projects in the Republic of Georgia, and $11.1 million US for a project in China, of which only about $2 million US went toward the projects.
Pegasus Pharmaceuticals declined to comment through its lawyer, Owais Ahmed.