A British Columbia Securities Commission (BCSC) panel has found that Richard Lian, a United States resident, and Enna M. Keller, a B.C. resident, breached several securities laws, including perpetrating fraud against investors. They raised approximately US $3.2 million by offering securities relating to Lexicon Building Systems Ltd., a manufacturing company that has been the subject of a cease trade order (CTO) by BCSC staff since October 2009.
offered securities to approximately 315 investors through a “Friends and Family Program” (FFP). Participants in the FFP were told that the money raised would be used to fund various operating costs, debts, and liabilities of Lexicon while Lian worked to remove the company from bankruptcy and get the CTO revoked. In return, FFP participants were told they would receive shares and warrants in Lexicon if and when the CTO was revoked. Lexicon was unaware of and did not authorize the FFP.
Read the full article at Market Wired.