A B.C. Securities Commission (BCSC) hearing panel has ordered almost $10 million in monetary sanctions along with permanent market bans against two sisters — Siu Mui “Debbie” Wong and her sister, Siu Kon “Bonnie” Soo — and a pair of companies in connection with several real estate fraud schemes.
The panel found that that real estate investment schemes involved illegal distributions and multiple acts of fraud. Overall, the panel found that “the sisters committed frauds totalling close to $12 million and were personally enriched by more than $2 million.”
The decision notes that although they aren’t considered mitigating factors in the case, there was a real business behind each joint venture; that they repaid unauthorized loans; and that the co-mingling of personal and joint venture funds was not part of a deliberate plan to defraud investors.
“Wong genuinely thought there was nothing wrong with what they did; they did not just take money out but they also put in their own money to pay joint venture expenses,” the decision notes.
Yet, the hearing panel also concluded that the fraud in the case “is significant” and that the sisters are not fit to participate in the capital markets.
“They took joint venture money for personal use,” the decision states. “They ignored legal obligations in the joint venture and bare trust agreements. They did not exercise any due diligence to ascertain legal requirements before issuing joint venture units.”
The hearing panel ruled that the sisters are a “serious ongoing risk to the capital markets” as another reason for banning them permanently.
“Significantly, Wong does not believe that the sisters did anything wrong even though their actions were objectively dishonest,” the decision states. “There is no evidence that Soo now appreciates that their actions were wrong.”
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