Regulators in B.C. are accusing a former rep and insurance agent of securities fraud, including illegal distributions.
The B.C. Securities Commission (BCSC) brought allegations today against Thomas Arthur Williams, who it says was the “directing mind”, director and officer of the Global Group of Companies. It alleges that he violated securities laws by illegally raising money from investors. The allegations have not been proven. The BCSC has set July 22 as the date for an initial hearing in the case.
In its notice setting out the allegations, the commission claims that the companies purported to take loans from investors, invest their funds, and pay them interest. It says they raised approximately $11.7 million from 123 investors this way, between February 2007 and April 2010.
The notice alleges that, in doing so, Williams made promises to investors, including that their investments were shielded from securities laws, that he would provide returns of at least 2% per month, and that he would preserve the integrity of their funds. It also claims that about $5.8 million of investor funds were invested with individuals and companies “introduced by or connected to persons who had criminal or regulatory histories of securities fraud.”
The regulator claims that investors were not informed about the fraudulent background of those individuals; nor were they told that the investments did not produce any returns; and, they were provided with fictitious account statements. The BCSC says that none of the respondents were registered, the companies never filed a prospectus, and that the distributions were illegal.