A man named Wesley William Robinson and his Halifax-based company defrauded five people fraud ranging from $25,000 up to $550,000 in a fake loan scheme.
Robinson obtained cash from the complainants, who thought their money was going to be used to secure large loans.
Witnesses identified as KH and BS appeared at the hearing. KH and BS are victims who were described as “relatively unsophisticated investors.”
BS met Robinson through her then-partner, who was a friend of Robinson’s.
BS was seeking financing for a business opportunity and Robinson presented a loan opportunity. Robinson completed this by using his offshore capital to pledge assets and secure bank guarantees. BS was requested to pay a US $150,000 bank facility fee.
In November 2017, BS was advised by Robinson that the transaction would not proceed and the bank fees were never repaid to BS. The Panel on this hearing said that Robinson likely used the money for personal transactions.
Concerning KH, she was offered an investment opportunity for a lump sum settlement of $25,000 that she had received as a result of a lawsuit in 2014. Robinson advised KH that he would use the principal to buy a “standby letter of credit issued by a major international bank.” Robinson told the woman he would give her $50,000 within one month.
KH transferred the money to Robinson’s personal bank account, which had a prior balance of only $38.30. The money was transferred to personal credit card accounts in Robinson’s name.
KH has not been repaid her principal or any return on her initial investment,
The panel at this hearing noted that KH and BS suffered severe financial hardship due to the respondent’s fraudulent promises, and acknowledged that the three other complainants also lost significant amounts despite being more sophisticated investors.
The panel said neither Robinson nor his company, were legally registered to trade or distribute securities in Nova Scotia or elsewhere in Canada. The panel is to decide on a penalty this fall. Originally sourced by Global News.