Vancouver (October 23, 2020) – The British Columbia Securities Commission (BCSC) accused Meiyun Zhang of defrauding B.C. investors in a $3 million investment fraud. Between 2014 and 2017, she allegedly fraudulently solicited money from three investors claiming to help Chinese students and tourists. According to the BCSC, she promised a no-risk return on investments. However, she allegedly did not spend the money as promised and used it instead for personal expenses such as gambling and paying an immigration lawyer to fight her removal order.
The British Columbia Securities Commission (BCSC) alleges Meiyun Zhang perpetrated a $3 million fraud against three B.C. investors, according to a press release the commission published in English and Chinese.
Woman defrauded B.C. investors out of more than $3 million
Between 2014 and 2017, Zhang allegedly convinced two Vancouver residents and one Richmond resident to lend her money or invest in her business promising a no-risk return on their investments.
The BCSC discovered that she allegedly told two investors their investments would be used to help Chinese students get a visa in Canada. Moreover, the BCSC accused her of telling a third investor that the funds would be used to exchange foreign currency for Canadian dollars for Chinese students and tourists visiting Canada.
Allegedly, she claimed the investors would earn returns of between 6 and 10 percent without any risk. However, the BCSC explained that ‘such returns are not possible without risk.’
BCSC’s investment fraud allegations against Zhang under the Securities Act
The BCSC pointed out that Zhang did not spend the investors’ money as promised. They alleged that she spent the money on personal expenses such as ‘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 of this year.
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