BCSC alleges woman perpetrated $3 million fraud against three B.C. investors

VANCOUVER, BC, Oct. 21, 2020 /CNW/ - The British Columbia Securities Commission (BCSC) is alleging that a woman defrauded B.C. investors of more than $3 million with claims of helping Chinese students and tourists.

Between 2014 and 2016, Meiyun Zhang convinced two Vancouver residents and one Richmond resident to lend her money or invest in her business. She told two of the investors that their investments would be used to help Chinese students get a visa in Canada. She told the third investor that the funds would be used to exchange foreign currency for Canadian dollars to be used by Chinese students and tourists visiting Canada.

Zhang claimed the investors would earn returns of between 6 per cent and 10 per cent without any risk, even though such returns are not possible without risk.

In addition, Zhang did not spend the investors' money as promised. Instead, the BCSC alleges she spent the money on other things, including:

• paying returns to investors in Canada and China
• repaying a personal loan to a Calgary real estate agent
• retail purchases
• utility bills
• paying an immigration lawyer to dispute her removal order by Canada Immigration
• cash withdrawals, and
• gambling at casinos.

The BCSC's allegations against Zhang under the Securities Act have not been proven. The commission will schedule a hearing date in December 2020.  

The BCSC wishes to acknowledge the importance of information the Financial Transactions and Reports Analysis Centre of Canada provided in connection with this investigation.

About the British Columbia Securities Commission (www.bcsc.bc.ca) 

The British Columbia Securities Commission is the independent provincial government agency responsible for regulating capital markets in British Columbia through the administration of the Securities Act. Our mission is to protect and promote the public interest by fostering:

• A securities market that is fair and warrants public confidence
• A dynamic and competitive securities industry that provides investment opportunities and access to capital

Learn how to protect yourself and become a more informed investor at www.investright.org

SOURCE British Columbia Securities Commission