Regulators in British Columbia are alleging that a Vancouver couple carried out wash trades through a succession of discount brokerage accounts, and that one of them subsequently lied about it to investigators.
The B.C. Securities Commission (BCSC) is accusing the married couple, Zhong Wen and Anhong Liu, of wash trading, and entering and cancelling pre-opening orders on the TSX Venture Exchange.
The notice of hearing alleges that they first engaged in wash trading through an account at TD in 2009. It says the firm warned them about their trading, and then terminated the account after its warnings were ignored. In 2010, the same thing happened with an account at CIBC Securities. After CIBC cut them off, they opened accounts at Questrade Inc., which also ended up terminating their accounts in 2012, the BCSC says.
Additionally, the BCSC says that when its staff interviewed Liu under oath about why she had entered and canceled pre-opening orders, she said that “her computer froze, and she inadvertently entered the orders by randomly clicking her mouse and pressing buttons on her keyboard.”
The regulator says that she told Questrade a different story — that she was distracted by something on television, and changed her mind.
The BCSC alleges that Liu’s statement to its investigators was false or misleading, and contrary to securities laws.
The allegations have not been proven. The first appearance into the allegations before a panel of commissioners is set for August 5.