Securities regulators in British Columbia allege that a former insurance agent defrauded investors of about $1.3 million.

The B.C. Securities Commission (BCSC) issued a notice of hearing Tuesday, alleging that Lynne Rae Nickford (aka Lynne Rae Zlotnik) perpetrated a fraud on investors when she transferred approximately $1.3 million of investor money to her personal account. The allegations have not been proven.

The BCSC claims that, between January 2009 and March 2010, Nickford, who was licensed to sell life insurance until that license was terminated by the Insurance Council of B.C. in April 2010, raised approximately $2 million from 13 investors by issuing approximately $1.4 million of promissory notes in the name of her company, Lynne Zlotnik Wealth Management, and securing loans for LZ Wealth Management from investors. However, the regulator charges that she transferred approximately $1.3 million of that money from her business account to her personal account, which was used to pay for personal expenses, including food, clothing and rent.

Counsel for the executive director of the BCSC will apply to set dates for a hearing into the allegations before a panel of commissioners on September 18.