BCSC panel bans Vancouver real estate developer for fraud

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A British Columbia Securities Commission (BCSC) panel has ordered monetary sanctions and permanent bans against Brendan James Schouw, a Vancouver resident, and his company Hornby Residences Ltd. for fraud.

In January 2017, a BCSC panel discovered that Schouw, a real estate developer, convinced one investor to invest $1 million in Hornby Residences for a Vancouver real estate project. After depositing the funds into Hornby’s bank account, Schouw redirected some of the money to his personal account. He then spent approximately $75,000 of investor’s money on his own personal mortgage payments and separate property management businesses, despite telling the investor that all of the invested money would be allocated towards the Vancouver real estate project.

The panel stated, “Schouw knowingly diverted the funds for his own purposes and did so with the knowledge that by so doing, he was putting the investor’s funds at risk.”

Schouw has been ordered to pay an administrative penalty of $125,000 and a disgorgement order of $74,612.

Both Hornby and Schouw have been ordered to cease trading in, and are prohibited from purchasing any securities or exchange contracts.

Read more at EIN News

This article is summarized by Canadian Fraud News Inc.