Insurance regulators in British Columbia have suspended a life agent who is facing allegations of wrongdoing from the B.C. Securities Commission (BCSC).

The Insurance Council of B.C. (ICBC) has suspended the life license of Thomas Arthur Williams, who, earlier this month was accused of securities fraud by the BCSC. The commission has accused Williams of violating securities laws in his role as the “directing mind” of the Global Group of Companies; which, it says, raised $11.7 million from 123 investors.

Former registrant allegedly committed fraud: BCSC

According to the BCSC’s allegations, the companies, and Williams, promised investors returns of at least 2% per month, that their investments would be shielded from securities laws, and that their money would be safe. In fact, the commission charges that about half of investors’ funds were invested with individuals and companies with a history of involvement in securities fraud. It says that the respondents were not registered, the companies never filed a prospectus, that the distributions were illegal, and that investors were deceived in various ways.

None of the allegations have been proven. Yet, the ICBC has suspended Williams too, indicating that it has started its own investigation, given that the BCSC’s allegations are relevant to his suitability to hold a life license.

In its order, it says that Williams has not responded to its inquiries about the BCSC’s allegations; and, given the length of time required for an investigation, the ICBC has decided that it’s in the public interest to suspend his life license until he appears before the council to address the BCSC’s allegations. Williams has a right to request a hearing into the ICBC decision.